Is Macy’s, Inc (NYSE:M) Overbought and J.C. Penney Company, Inc (NYSE:JCP) Oversold?

Posted by admin September 26, 2013 0 Comment 1443 views


The holiday season is right round the corner and retailers are adorning windows, launching new products, polishing marketing and sales strategies and trying almost every trick in the retailing book to ensure that customers are not only attracted to turn and look at them, but will stop and shop too. Retailers going on a holiday-hiring spree are not a new or novel occurrence. Not only do the stores have to be attractively bedecked and well-stocked, they must also have staff to handle the potential holiday shopping rush.

Around the same time in 2012, approximately 36% of retailers in the United States had been expecting to hire additional workers to keep up with the shopping season. At that point of time, Macy’s, Inc (NYSE:M)’s had hired 80,000 seasonal staff which had been a 2.5% rise from the previous year. This year, there has been no news from the company on this front.

J.C. Penney Company, Inc (NYSE:JCP), on the other hand plans on hiring 35,000 seasonal staff and are all set to handle the holiday season crowds. The company has been in turbulent waters for a long time now and its shares have made a shocking 43% plunge y-t-d. Rising losses and dipping revenues have wrecked havoc with the company and there have been no signs of recovery.

It needs to be seen whether J.C. Penney Company, Inc (NYSE:JCP) would be able to offer holiday discounts and serve its customers like it did in the past. Stock had been falling continuously after Goldman Sachs raised concerns over liquidity of the company and lower sales forecast for third quarter.

Wednesday’s trading

In Wednesday’s trading session, Macy’s, Inc (NYSE:M) stock dropped by 1.79%. The shares opened at a price of $43.61, climbed to an intraday high of $43.74 and headed to a close of $42.80. Approximately 6.93 million shares were traded on Wednesday and an average volume of 5.94 million shares were traded over a period of 30 days. The 52-week low of the shares was $36.30 and the 52-week high was $50.77. The company has a market capitalization of $16.10 billion.

On Wednesday, there was a 14.96% drop in J.C. Penney Company, Inc (NYSE:JCP) stock. The shares opened at a price of $11.62, climbed to an intraday high of $11.66 and headed to a close of $10.12. Approximately 0.100 million shares were traded on Wednesday and an average volume of 26.51 million shares were traded over a period of 30 days. The 52-week low of the shares was $9.93 and the 52-week high was $27.00. The company has a market capitalization of $2.23 billion.

Playing all the cards

Both Macy’s, Inc (NYSE:M) and J.C. Penney Company, Inc (NYSE:JCP) have had their fair share of bad luck as far as revenues and sales are concerned. Consumers are tightening their purse strings and the economy has raised its head a little bit but the weakness is still very evident. The retailers are trying every little thing to make this holiday season work for them. They are conducting promotional events, doling out heavy discounts and offering free shipping for online orders. Hopefully, this amalgamation of marketing strategies will help in breathing some life into their flagging fortunes.


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