Why J. C. Penney Had A Huge Start To 2016

One retailer had a huge start to 2016.

A morning note from Buckingham Group mentioned that J C Penney Company Inc (NYSE: JCP) has been putting competitive pressure on Gap Inc (NYSE: GPS). The analysts, led by David Glick, said JC Penney is among the firm's top buys into earnings.

Shares rose over 5 percent on Monday.

Glick said that "making plan" in a tough macroeconomic environment is "good enough" to move depressed share prices higher. Regarding JC Penney specifically, the note mentioned the company is on track to hit the low end of a 4 percent to 5 percent plan while maintaining its EBITDA guidance.

Of particular importance, Glick mentioned that JC Penney, along with Burlington Stores Inc (NYSE: BURL), is among "the most controversial names in [Buckingham's] coverage." Investors seem "torn over the risk/reward proposition, current fundamentals, and further earnings/margins growth prospects," he added.

An insider buy might also be on investors' minds. According to a Form 4 published late December 31, JC Penney' Chairman Myron Ullman III reported a purchase of ~835 derivative securities at $6.77 apiece.