Why J.C. Penney (JCP) Stock Is Up Today

NEW YORK (TheStreet) -- J.C. Penney (JCP) was gaining 3.3% to $9.37 Wednesday following a positive note from ITG Research.

In a note to investors the firm said the retailer's second quarter results will be in-line or slightly ahead of consensus expectations. The firm expects revenue of $2.786 billion for the quarter, slightly ahead of consensus estimates of $2.78 billion. ITG estimates same-store sales of 6.2% year-over-year compared to consensus estimates of 5.8% year-over-year.

J.C. Penny recently appealed a court ruling that said it interfered with a contract between Macy's (M) and Martha Stewart Living Omnimedia (MSO), which may also be a reason for retailer's gains.

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TheStreet Ratings team rates PENNEY (J C) CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate PENNEY (J C) CO (JCP) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and deteriorating net income."

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