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Kohl's (KSS) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Kohl's (KSS - Free Report) closed at $62.95, marking a -1.38% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 0.16%.

Heading into today, shares of the department store operator had lost 20.95% over the past month, lagging the Retail-Wholesale sector's loss of 5.09% and the S&P 500's loss of 4.99% in that time.

Investors will be hoping for strength from KSS as it approaches its next earnings release, which is expected to be March 7, 2019. The company is expected to report EPS of $2.15, up 14.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, down 1.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.48 per share and revenue of $19.64 billion, which would represent changes of +30.79% and +2.87%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for KSS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.74% higher. KSS is currently a Zacks Rank #3 (Hold).

In terms of valuation, KSS is currently trading at a Forward P/E ratio of 11.65. This valuation marks a premium compared to its industry's average Forward P/E of 11.32.

Investors should also note that KSS has a PEG ratio of 1.75 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Regional Department Stores industry currently had an average PEG ratio of 1.15 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 201, which puts it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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