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Kohl's (KSS) Gains As Market Dips: What You Should Know

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Kohl's (KSS - Free Report) closed at $48.71 in the latest trading session, marking a +1.52% move from the prior day. This change outpaced the S&P 500's 1.42% loss on the day. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq lost 0.47%.

Coming into today, shares of the department store operator had lost 2.44% in the past month. In that same time, the Retail-Wholesale sector lost 3.85%, while the S&P 500 gained 0.39%.

Kohl's will be looking to display strength as it nears its next earnings release. On that day, Kohl's is projected to report earnings of $2.15 per share, which would represent a year-over-year decline of 3.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.86 billion, up 11.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $19.79 billion, which would represent changes of +704.13% and +24.05%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Kohl's. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Kohl's currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Kohl's is holding a Forward P/E ratio of 6.56. For comparison, its industry has an average Forward P/E of 6.56, which means Kohl's is trading at a no noticeable deviation to the group.

We can also see that KSS currently has a PEG ratio of 0.82. 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 0.55 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 2, putting it in the top 1% 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.


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