J. C. Penney Company, Inc. (NYSE:JCP) waking on thin line between bulls and bears tracks and with several factors it’s pulling towards optimistic side to some extend but some take to pessimistic side. So, volatility evaluation is supposed to give some wisdom of how far the fund will fall if the market takes a dive and how high the fund will rise if the bull starts to climb. For this relative risk measurement, JCP has beta value of 0.45. A fund with a beta less than 1 is considered less volatile than the market; more than 1 means more volatile. If market is up, the fund should outperform by positive momentum and if the market heads lower, the fund should go down by same tendency.
Once the concept of beta is understood, an investor can intuitively determine whether or not a particular stock has a high or low beta. For example, an established blue chip company in a mature industry with stable earnings will most likely have a much lower beta compared to a start up Biotechnology Company.
J. C. Penney Company, Inc. (NYSE:JCP) noted the recent trading activity with the shows upbeat performance moved up of 1.14% and traded at $3.54. The stock has 308.83 shares outstanding while 74.60% shares of the company were owned by institutional investors. In the profitability analysis, the company has gross profit margin of 34.50% while net profit margin was at 1.90%. Giving some intention to the performance of firm, its weekly performance was 9.94% and month’s performance was calculated as 23.34%. And JCP has Average True Range for 14 days of 0.22. ATR address problem by accounting for the gap and more accurately measuring the daily volatility than possible by using the simple range calculation.
In its latest closing price kept its distance from the simple moving average of 20 days at 19.90% and 5.33% from SMA 50, while it was Bearish -24.71% from the SMA price of 200 days. As results using moving averages can be unsystematic at times the market appears to respect SMA support/resistance and trade signals, and other times it illustrates no deference. According to buy-side analysts, moving averages work quite well in strong trending conditions, but often poorly in choppy or ranging conditions. JCP has analyst rating of 3 on scale of 1-5.
Dugout more deeply and finding that are JCP earnings expected to grow/drop in the future, for this we can take help from price to earnings growth ratio but it has unstated value, it is determining a stock’s value while taking into account the earnings’ growth. It is measuring a stock’s valuation (Price to Earning) against its projected 3-5 year growth rate.