J.C. Penney May Be Wall Street's Comeback Kid and Other #Stocks2Watch

#Stocks2Watch: FOX Business rounds up the stocks you should watch before the opening bell rings on Wall Street. Tweet @adamsamson or e-mail adam.samson@foxbusiness.com and tell us what stocks you're watching -- your picks could appear online!

1. J.C. Penney (NYSE:JCP) | Bon-Ton Stores (NASDAQ:BONT)

FOX Business Assignment Editor Jessica MacKenzie says she's watching shares of J.C. Penney (NYSE:JCP).  The shares are rallying 6% after analysts at Citigroup upped the retailer to ‘buy’ from ‘neutral.’ Citi also hiked its price target on the stock to $11 from $7.50.

MacKenzie also adds that there is a "connection with Bon-Ton Stores (NASDAQ:BONT)." She writes:

Bon-Ton earnings topped estimates, but revenue dropped 9.6% and same-store sales slid 7.3% last quarter.  In addition, Bon-Ton CEO Brendan Hoffman has declined to renew his contract so he will exit next year.

Now comes the interesting part, from WSJ Market Talk: Hoffman, “who has executed several retail turnarounds, has had his name thrown around as a possible CEO for J.C. Penney.”

2. American Eagle Outfitters (NYSE:AEO)

American Eagle Outfitters (NYSE:AEO) revealed a sharp drop in fourth-quarter profits amid discounting, and warned it will likely earn less than Wall Street expected for the current quarter.

The shares are sliding 5%.

3. Macy's (NYSE:M)

Macy's shares are jumping after analysts at Wells Fargo reportedly upped their rating on the retailer to 'outperform' from 'market perform.'

4. Boyd Gaming (NYSE:BYD)

Activist investor Elliott Associates revealed a nearly 5% stake in Boyd Gaming (NYSE:BYD). Shares of the casino operator are soaring 16%.

5. La Jolla Pharmaceutical (NASDAQ:LJPC)

La Jolla Pharmaceutical (NASDAQ:LJPC) shares are skyrocketing by almost 70% after the small-cap pharmaceutical firm reported upbeat results from a drug aimed at fighting chronic kidney disease.