JC Penney Defies Odds

John Ransom | August 14, 2014 2:48 PM

Welcome to John Ransom’s Stocks in the News where the headlines meet the trendlines.

Click here to listen to Ransom Notes Radio live or for archives of previous shows.

Stock number one: Red Robin

Red Robin plunges to 52-week low after awful quarter—Yahoo Finance:

Red Robin Gourmet Burgers (RRGB) was having one of the worst trading days in the stock's history Thursday, slumping to a 52-week low after a terrible quarterly report and further putting its five-year market winning streak in doubt.

The Greenwood Village, Colo., burger chain recently was down $13.63 at $50.92. On a percentage basis, the 21.1% drop would be its fourth-largest in a session going back to 2002. Earlier in the day, it was at $50.50. Meanwhile, two hours into trading, volume was 15 times higher than average.

Symbol: RRGB

Trailing PE: 22; Forward PE: 15

PEG: 1.73

Dividend: NA

Estimate Trend: NA

Ransom Note Trendline: Avoid Red Robin

Stock number two: Air Methods Corp.

Why You Shouldn't Bet Against Air Methods (AIRM) Stock--Zack's

One stock that might be an intriguing choice for investors right now is Air Methods Corp. (AIRM). This is because this security in the Medical Services space is seeing solid earnings estimate revision activity, and is a great company from a Zacks Industry Rank perspective.

The consensus estimate calls for J.C. Penney to report a loss of 93 cents a share on revenue of $2.79 billion. The company reported a loss of $1.16 a share in the first quarter, narrower than the Thomson Reuters consensus estimate of a loss of $1.25 a share. Revenue totaled $2.8 billion, which beat the consensus estimate of $2.71 billion.

Symbol: JCP

Trailing PE: NA; Forward PE: NA

PEG: 0.12

Dividend: NA

Estimate Trend: Up

Ransom Note Trendline: Avoid JC Penney