Leggett & Platt isn't the only shop benefiting from the new J.C. Penney. Taking a page from his days at Apple, CEO Ron Johnson has decided to rid the stores of cash registers and move item inventorying to an RFID system. RFID tagging makes managing inventory easier and checkout go more smoothly. Though it's an expensive crossover, I believe J.C. Penney will ultimately see a major benefit. It is one of the first companies to fully make the switch to RFID, as most major retailers are still in testing phases. Johnson is sure, though, from his experience at Apple, that this system is far superior to traditional inventory management systems and will transform the business when it switches over early next year.
One company vying for JCP's RFID contract is R.R. Donnelly & Sons (NYSE: RRD ) . R.R. Donnelly is a leader in RFID manufacturing and logistics. Though last year was a losing year in the net income department, things are looking up. The company recently secured a multiyear agreement with a publishing company, and if the J.C. Penney deal goes through, the stock will see a major boost from the near-52-week low it's at now. The $2 billion company trades at only 5.84 times forward earnings while it makes a strong effort to build a nice book of business for the next few years, making it an attractive pick for the value seekers in the group.