NEW YORK, May 1 (Reuters) - Shares of U.S. retailer J.C. Penney could double in price over the next three years, Barron's reported over the weekend.

The report said the company had made substantial progress over the past year but remained under the radar.

At $9.28, the stock price is down from the $43 hit in February 2012. But Barron's said that if the company's new chief executive, Marvin Ellison, could extend the improvements already in place, Penny's shares could rise anywhere from 50 percent to 100 percent.

"The turnaround potential is promising," said Chris Terry, portfolio manager at Hodges Capital in Dallas. Hodges has held the stock for more than a year but recently added to its holdings.

"Marvin is the real deal and 100 percent focused on creating shareholder value," he added.

Terry estimates that when the turnaround of the company is completed within three to five years, J.C. Penny could earn $2 per share. Using an undemanding price-earnings multiple of 10, the stock would be worth $20, double the current price, the report said.

(Reporting by Gertrude Chavez-Dreyfuss; Editing by Peter Cooney)