Value investor believes in retailer's turnaround

A J.C. Penney store in Laguna Hills, California
Scott Mlyn | CNBC

Craig Hodges, chief executive officer of Hodges Capital Management, is buying shares of a retailer stock that's already having a big year.

The value investor decided to buy J.C. Penney for his "Squawk Box" Platinum Portfolio, as he is a believer in the turnaround story. The stock is up 33 percent this year.

Here's why he thinks the gains can keep going...

More In Investing

CNBC ProGoldman has a playbook for trading the economic comeback and subsequent slowdown
CNBC ProHere’s why Wall Street analysts are bullish on Honeywell ahead of Friday's earnings
CNBC ProCiti hikes Tesla earnings estimates, but still sees big drop in the stock ahead