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Actionable news in JCP: J.C. PENNEY COMPANY Inc,

J.C. Penney: What To Do After Friday's Irrational Meltdown

J.C. Penney released strong Q3-15 results last week.

Total revenues +4.8% Y/Y, comparable store sales +6.4% Y/Y, but JCP's stock sold off regardless, closed down ~15% lower on Friday.

Sharp stock movement after earnings release is nothing out of the ordinary for JCP.

What to do after Friday's misguided sell-off?

What a week last week was. On Wednesday retail company Macy's (NYSE:M) reported third quarter earnings and gave a disappointing earnings outlook -- Macy's lowered its earnings forecast for the full-year from $4.70-4.80/share to $4.20-4.30/share -- that sent shock waves through the retail sector. As a result, many other retail companies were sharply lower including Urban Outfitters (NASDAQ:URBN) and J.C. Penney (NYSE:JCP), two companies I happen to have high expectations for.

Retail company J.C. Penney in particular was actually in a really good position last week to shine. The retailer announced the settlement of a false advertising class action lawsuit, and effectively pre-released third quarter comps in the same press release. So, with strong comps coming investors' ways, it was all going to be good, right?

Wrong. Despite a...