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Kohl's (KSS) Gains But Lags Market: What You Should Know

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Kohl's (KSS - Free Report) closed at $60.16 in the latest trading session, marking a +0.65% move from the prior day. This change lagged the S&P 500's 2.44% gain on the day. Meanwhile, the Dow gained 1.65%, and the Nasdaq, a tech-heavy index, added 0.28%.

Coming into today, shares of the department store operator had gained 18.9% in the past month. In that same time, the Retail-Wholesale sector lost 13.11%, while the S&P 500 lost 9.65%.

Wall Street will be looking for positivity from Kohl's as it approaches its next earnings report date. On that day, Kohl's is projected to report earnings of $2.13 per share, which would represent a year-over-year decline of 4.05%. Meanwhile, our latest consensus estimate is calling for revenue of $6.86 billion, up 11.68% from the prior-year quarter.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $7.29 per share and revenue of $19.79 billion. These results would represent year-over-year changes of +702.48% and +24.05%, respectively.

It is also important to note the recent changes to analyst estimates for Kohl's. 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. 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 0.14% lower. Kohl's is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Kohl's is holding a Forward P/E ratio of 8.19. This represents a premium compared to its industry's average Forward P/E of 8.01.

Meanwhile, KSS's PEG ratio is currently 1.02. 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. 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 industry currently has a Zacks Industry Rank of 12, which puts it in the top 5% 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.

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