Argus analyst John Eade downgraded J.C. Penney to Sell, anticipating continued losses for the stock for the next two years while also warning that at a current share price below $2, the company is operating with a more elevated risk. The analyst states that while J.C Penney has made efforts to "restructure its merchandise assortment, close underperforming stores, and bolster its Omnichannel business, its operating results continue to deteriorate." Eade cites the company's margin deterioration coming from store closings, poor inventory management, and "steep discounting" intended to clear excess inventory. The analyst also sees J.C. Penney operating against "intense" competition from a wide range of retailers and suffering from weak mall traffic, while also facing a very expensive "arms race" to improve e-commerce capabilities.