Even if J.C. Penney’s shares rebound in August, as Weinswig predicts, there could be better places to invest in the retail industry.
Macy’s continues to gain shares from J.C. Penney. Big-box stores that sell apparel, such as Target and Wal-Mart, also have been significant beneficiaries.
“There are certainly big-box retailers that have been winners here and ones that you might want to look at as potential investment vehicles,” Weinswig said.
While investing in big-box stores may involve less risk and positive short-term return, Weinswig is confident that investing in J.C. Penney will benefit investors in the long run.
“They are really reinventing the store, and one of the reasons I do believe in this company and this stock from my head to my toes is because it needs to work in order for brick and mortar retail to work,” Weinswig said.
Weinswig explained that Johnson’s willingness to try new strategies and change the company from the bottom up is what will make J.C. Penney a successful company in the future. Investing in the retailer now is betting on a turnaround.
However, for investors who are looking for high dividends, J.C. Penney may not be the stock of choice. “I don’t know if they will bring the dividend back any time soon,” Weinswig said.
—By CNBC.com’s Madeline Laskoski
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Disclosure information for Deborah Weinswig was not immediately available.