Value investor believes in retailer's turnaround

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

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...