JCPenney (JCP) has been on a wild ride in the past year-plus.

JCP stock gave up more than 50% in calendar 2013 on fears that the struggling retailer might never recover from the sales declines it suffered under the Ron Johnson regime. But after JCPenney stock bottomed at a little under $5 per share in early 2014, shares started to rebound — back to a peak above $11 as recently as September.

However, the bottom has fallen out once more, and JCP stock is in the $7 range. All told, despite the volatility in JCPenney stock, shareholders are right back where they were in October 2013.

Enter Monday’s big news: A fresh CEO will be taking over the embattled retailer next year, with veteran Myron Ullman stepping down next year to be replaced by Home Depot (HD) executive vice president of stores Marvin Ellison.

Shares are rallying a bit on the news. But should JCP stock investors really have faith, or is this just another head-fake?

JCPenney Stock Faces Real Challenges

I actually set foot in JCPenney for the first time in about 10 years last weekend, to buy my kids new winter coats. The “sales” they were running were conspicuous marketing tricks, just like the old JCPenney, with my toddler’s coat boasting a suggested retail price of $70 — but thankfully, I got it for a steal at $35!

When he joined JCP as CEO, former Apple (AAPL) executive Ron Johnson tried to do away with these kinds of shenanigans … but was greeted by steep same-store sales declines.

Apparently, JCP has reverted to these tactics and managed to prop up sales; in February, JCPenney actually forecast that it would grow its profits and sales in 2014 thanks to bringing back these old discounting tricks that loyal JCP shoppers came to expect.

But not everyone is convinced. Just last week, Maxim Group downgraded JCPenney to “sell” after noting that the company’s forecasts for the next few years were “overly optimistic.”

Furthermore, JCP revenue has plummeted from more than $17 billion as recently as fiscal 2012 to about $12 billion last fiscal year. So while sales may have stabilized, the long-term trend is certainly downhill.

It’s easy to see why, given the rise of e-commerce options like Amazon (AMZN), as well as the uncomfortable positioning of JCPenney in between cheap big-box stores like Target (TGT) and Walmart (WMT) and upscale retailers like Macy’s (M).

The bottom line is that whatever the changes in the corner office, JCP stock has bigger woes than who is sitting in the C-suite. The competition from e-commerce and the lack of brand appeal with younger shoppers could continue to hold this retailer back.

Maybe it has stabilized, and maybe there are swing trades to be made on a sharp pullback in JCP stock.

But I’d be reluctant to buy and hold based on turnaround hopes.

Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP.