Is former retail star JC Penney (JCP) going into “junk territory”?

After disappointing Q2 earnings, the shares of prominent retail stores chain JC Penney (JCP) tumbled by more than 27%, its biggest fall in JCP’s 40-year history as a public company. Now downgraded from B to B- by S&P Global Ratings, analysts wonder whether JCP has just become a “junk” stock that could end like Sears (SHLD) whose capitalization is just USD 117 million or whether it can rebound and therefore become a very-long-term buy opportunity especially for LEAPS traders.

© Chart provided by TradingView.com, add-ons by Cyceon.