J.C. Penney Company, Inc. (NYSE:JCP) is currently trading at $7.57, -0.62 (-7.63%). It is a screaming buy in my opinion because of one main reason. This morning, the company affirmed previous guidance. The stock has sold off on that news. Why? Great question! Most likely because the street was hoping for them to raise guidance. This has created one of the best buying opportunities in a stock in the new year. Below is the main, key reason.
1. They affirmed guidance which in essence means they have stopped the bleeding. It means they have turned the corner. Granted they have a long way to go but so did Best Buy Co., Inc. (NYSE:BBY), Hewlett-Packard Company (NYSE:HPQ) in late 2012 when those stocks were around $12.00 a share. Don't we all wish we bought those then?
This alone tells me the stock is worth at least $10.00 per share and means there is 30% upside in 2014 this year.