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 JCP has been putting competitive pressure on Gap Inc 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 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.