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

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Kohl's (KSS - Free Report) closed the most recent trading day at $48.27, moving +1.07% from the previous trading session. This change outpaced the S&P 500's 0.98% gain on the day.

Coming into today, shares of the department store operator had lost 11% in the past month. In that same time, the Retail-Wholesale sector gained 0.25%, while the S&P 500 gained 2.57%.

Wall Street will be looking for positivity from KSS as it approaches its next earnings report date. The company is expected to report EPS of $0.64, up 6300% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.47 billion, up 12.46% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.03 per share and revenue of $19.52 billion. These totals would mark changes of +598.35% and +22.33%, respectively, from last year.

Any recent changes to analyst estimates for KSS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate has moved 0.71% lower within the past month. KSS is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that KSS has a Forward P/E ratio of 7.92 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.92.

We can also see that KSS currently has a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KSS's industry had an average PEG ratio of 0.81 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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