J. C. Penney Company (NYSE:JCP)- Stocks Under Profitability Radar: AerCap Holdings N.V. (NYSE:AER)

Following analysis criteria, J. C. Penney Company, Inc. (NYSE:JCP) attains noticeable attention, it are plunging -5.02% to traded at $7.19. JCP attains analyst recommendation of 2.40 on scale of 1-5 with week’s performance of -13.48%.

  1. C. Penney is slated to report its fourth-quarter fiscal 2016 results on Feb 24, 2017, is quite confident of reporting fourth consecutive quarter of positive operating profit. The company reaffirmed its fiscal 2016 EBITDA target of $1 billion. The company has taken up several strategic initiatives to drive traffic. J. C. Penney, in order to enhance consumer shopping experience, has been focusing on remodeling, renovating and refurbishing its stores with special focus on enhancing high-margin center core department that houses handbags, fashion accessories, sunglasses and fashion jewelry.

The firm has noticeable returns on equity ratio of -21.40%, which shows how much profit each dollar of ordinary stockholders’ equity generates. The returns on investment very popular metric among passive investors, it stands at -1.80%. To see the other side of depiction, profit margin of JCP stands at negative -2.10%; that indicates a firm actually every dollar of sales keeps in earnings. The -2.80% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.

To find out the technical position of JCP, it holds price to book ratio of 1.94 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 11.41. JCP is presenting price to cash flow of 12.58 and free cash flow concluded as 3.12.

AerCap Holdings N.V. (NYSE:AER) presented as an active mover, shares shows upbeat performance moving up -1.06% to traded at $43.14 in most recent trading session. The firm has floated short ratio of 4.92%, hold to candle to sentiment indicator of Short Ratio, its stand at 5.56.

Efficiency or profitability analysis gives an appropriate idea for investment decision; AER attains returns on investment ratio of 5.50%, which suggests it’s viable on security that has lesser ROI. To strengthen this concept we can use profit margin, which is standing at positive 18.90%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 41.60% and 88.70% respectively.

Turns back to returns ratios, returns on equity stands at 11.30%. Usually, financial analysts consider return on equity ratios in the 15-20% range as an attractive level of investment quality. Narrow down focus to firm performance, its weekly performance was 3.68% and monthly performance was -2.02%. The stock price of AER is moving up from its 20 days moving average with 0.64% and isolated positively from 50 days moving average with 0.68%.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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