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Released on Monday, December 5, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) -J.C. Penney Company, Inc. (NYSE:JCP) has been having a stellar week recently. Coming in at $33.52 per share (4:00 PM EST, December 5th, 2011), the company took an extra-day trading leap over-night on Thursday as a result of favorable November sales reports.
J.C. Penney could be just the right touch to top off that present of an upstanding portfolio, with a bow if you please. In the next coming months, customers will be flooding into J.C. Penney stores nation-wide purchasing shoes, clothes, accessories, decorations, even cutlery and kitchen utensils. J.C. Penney's is an all-American department store, with provisions for every taste.
With such favorable sales forecasts, this company is unlikely to be a flop for your holiday investing—if you know what we mean. If it’s going to be anything like last year, JCP stock will continue to rise through mid- to late-December, before topping off and returning with a downturn. After that it will usually rebound and trend forward again, continuing the cycle.
But the recent spike in pricing has us a little worried that the stock might be overbought at the moment, so stay weary, look for any indication of a sharp dip in prices. JCP has P/E of about 43 right the moment, a rather high for a firm that has been around for so long, while only maintaining an EPS of 0.76. Part of this problem is that Penney's returns investor capital directly in the form of dividends valued at 2.43% of average market price of the stock annual.
But what’s really nice about JCP, is its stable-volatility. Yes, you read correctly. Its stable because it stays within a relatively small price range, having a 52-week range of $23.44 per share and $41.00 per share and while that might seem large—the waves on the movements are fairly straightforward, and even predictable based on historical data. However, it’s also volatile in that it moves a great deal during intra-day trading over a wide-variety of periods, making it a prime candidate for the “buy low, sell high” maxim.
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