Just when it seemed everyone had given up on JC Penney, the stock is mounting a serious comeback.
The shares traded below $5 in February, marking a multiyear low for the stock. Since then, JC Penney has more than doubled in the course of just seven months.
"The recovery here on JC Penney has been a little faster than we would have thought in terms of comp and margin recovery," said Craig-Hallum Capital analyst Alex Fuhrman.
But after just a quick run-up, the analyst doesn't see a lot more gas in the tank.
(Read MoreCramer's Mad Dash: JCP is very strong)
"We'd be cautious here at these levels," Fuhrman said. "I think a lot of the upside here is already priced in. Realistically, you could be looking at high single-digit comps [or comparisons] in the back half of the year as inventory productivity normalized. But expectations are starting to catch up to that."
Above his $10 price target, Fuhrman "would be cautious."
Meanwhile, the technicals on JC Penney have certainly improved, according to BTIG chief technical strategist Katie Stockton.
"It's really a turnaround play from a technical standpoint," she said. The recent rally "took it above resistance on the chart, and completed what we call a basing phase."
So while Stockton won't sound the all-clear just yet, she notes that "the chart is now more favorable."
For the full discussion of JC Penney, with Stockton on the technical and Fuhrman on the fundamentals, see the above video.