Analyst Downgrades: JCPenney, Abercrombie, and Guess?

Analysts downwardly revised their ratings on J C Penney Company Inc (JCP), Abercrombie & Fitch Co. (ANF), and Guess?, Inc. (GES)

Feb 2, 2015 at 9:18 AM
facebook twitter linkedin


Analysts are weighing in today on retailers J C Penney Company Inc (NYSE:JCP), Abercrombie & Fitch Co. (NYSE:ANF), and Guess?, Inc. (NYSE:GES). Here's a quick roundup of today's bearish brokerage notes on JCP, ANF, and GES.

  • Evercore ISI initiated coverage of JCP with an uninspiring "sell" rating -- sending the shares lower in electronic trading. On the charts, the stock has had a strong start to the year -- due in part to a pair of well-received fundamental developments -- tacking on 12.2% to trade at $7.27. As such, JCP's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.10 ranks in the bullishly skewed 71st annual percentile. With more than 34% of J C Penney Company Inc's float sold short, though, some of this call buying may have been a result of shorts hedging against any additional upside.

  • Evercore ISI also weighed in on ANF, cutting its outlook on the shares to "sell" from "hold," and slashing its price target by $25 to $20. This negative analyst note isn't too surprising, considering the equity has surrendered more than a quarter of its value over the past 52 weeks, and hit a five-year low of $25.25 on Friday before settling at $25.52. This skepticism is shared elsewhere on the Street, as well, with Abercrombie & Fitch Co.'s 10-day ISE/CBOE/PHLX put/call volume ratio of 2.99 resting higher than 87% of similar readings taken in the past year. Additionally, more than 27% of ANF's float is sold short, and it would take more than eight sessions to cover, at average daily trading levels.

  • GES also received attention from Evercore ISI, with the brokerage firm downwardly revising its rating on the stock to "sell" from "hold." Similar to ANF, GES has put in a dismal performance over the past 52 weeks, down 33% to churn at $18.78. What's more, the shares bottomed out at a nearly six-year low of $18.58 on Friday. Should Guess?, Inc. continue to head south, another round of bearish brokerage notes could pressure the security lower. The equity's consensus 12-month price target of $21.50 stands at a more than 14% premium to GES' current perch, leaving the door wide open for price-target cuts.
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners