Back to top

Image: Bigstock

Kohl's (KSS) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest trading session, Kohl's (KSS - Free Report) closed at $47.30, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.3%.

Coming into today, shares of the department store operator had lost 11.88% in the past month. In that same time, the Retail-Wholesale sector gained 2.41%, while the S&P 500 gained 4.28%.

KSS will be looking to display strength as it nears its next earnings release. On that day, KSS is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 6300%. Our most recent consensus estimate is calling for quarterly revenue of $4.47 billion, up 12.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.03 per share and revenue of $19.52 billion, which would represent changes of +598.35% and +22.33%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for KSS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.71% lower. KSS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that KSS has a Forward P/E ratio of 7.8 right now. For comparison, its industry has an average Forward P/E of 7.8, which means KSS is trading at a no noticeable deviation to the group.

We can also see that KSS currently has a PEG ratio of 0.97. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 3, putting it in the top 2% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Kohl's Corporation (KSS) - free report >>

Published in