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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 $33.18 in the latest trading session, marking a +1.72% move from the prior day. This change lagged the S&P 500's 1.73% gain on the day. Elsewhere, the Dow gained 1.27%, while the tech-heavy Nasdaq added 0.28%.

Coming into today, shares of the department store operator had gained 20.99% in the past month. In that same time, the Retail-Wholesale sector gained 12.18%, while the S&P 500 gained 9.34%.

Kohl's will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2022. The company is expected to report EPS of $1.08, down 56.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.07 billion, down 8.4% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.19 per share and revenue of $18.51 billion. These totals would mark changes of -42.84% and -4.74%, respectively, from last 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. 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, 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. The Zacks Consensus EPS estimate has moved 18.32% lower within the past month. Kohl's is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Kohl's is holding a Forward P/E ratio of 7.79. This represents a no noticeable deviation compared to its industry's average Forward P/E of 7.79.

Meanwhile, KSS's PEG ratio is currently 0.97. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 0.76 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 251, putting it in the bottom 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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