We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Kohl's (KSS) Diligent Moves Retain Solid Momentum?
Read MoreHide Full Article
Kohl's Corporation (KSS - Free Report) looks quite promising buoyed by its strong brand portfolio, innovative strategies and better-than-expected third-quarter fiscal 2016 results. Notably, the stock has surged a whopping 54.4% in the past six months, clearly outperforming the Zacks categorized Retail-Regional Department Stores industry, which noted growth of 33.3%. Also, it exhibits a long-term earnings growth rate of 8.8%, with a VGM Score of “A,” instilling confidence about its momentum.
Driven by these factors, this Zacks Rank #3 (Hold) company hit a 52-week high of $59.67 yesterday, though it eventually closed at $59.43. Moreover, the estimates have witnessed an uptrend. Over the past 30 days, both the Zacks Consensus Estimate of $3.93 and $4.21 for fiscal 2016 and fiscal 2017, respectively, increased 7 cents.
Kohl’s regularly introduces new brands in order to keep the inventory assortment fresh and drive customer traffic to its stores and website. Additionally, the company has been experiencing notable growth in its e-commerce business for the last few years. Moreover, Kohl’s has been making significant technology investments to support its online business and fortify its omni-channel platform.
Looking at the company’s performance, we note that it delivered better-than-expected results in the fiscal third quarter, wherein both earnings and revenues exceeded estimates. Moreover, the bottom line increased year-over-year.
However, sales declined on a yearly basis, due to a challenging sales environment and lower comparable store sales (comps). This signals that the company’s strategic initiative – ‘Greatness Agenda’ – which began in first-quarter fiscal 2014, to increase transactions per store and sales, has been reflecting weakness, of late. Moreover, comps declined in the first three quarters of fiscal 2016, which is raising concerns for the near term.
Nonetheless, management remains optimistic on its initiative to drive sales over the long term. Further, Kohl’s is making consistent efforts to improve its base business and gear up for the holiday season.
We expect the aforementioned factors to help the company sustain its sturdy momentum and stay afloat, even amid difficult times. Hence, we suggest investors to hold on to the stock as the rest is a wait-and-watch story.
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained roughly 98.6% year to date.
Tilly’s, with a long-term earnings growth rate of 15.5%, has skyrocketed 133.3% in the past six months.
Zumiez, with a long-term earnings growth rate of 15%, has jumped 71.6% year to date.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Can Kohl's (KSS) Diligent Moves Retain Solid Momentum?
Kohl's Corporation (KSS - Free Report) looks quite promising buoyed by its strong brand portfolio, innovative strategies and better-than-expected third-quarter fiscal 2016 results. Notably, the stock has surged a whopping 54.4% in the past six months, clearly outperforming the Zacks categorized Retail-Regional Department Stores industry, which noted growth of 33.3%. Also, it exhibits a long-term earnings growth rate of 8.8%, with a VGM Score of “A,” instilling confidence about its momentum.
Driven by these factors, this Zacks Rank #3 (Hold) company hit a 52-week high of $59.67 yesterday, though it eventually closed at $59.43. Moreover, the estimates have witnessed an uptrend. Over the past 30 days, both the Zacks Consensus Estimate of $3.93 and $4.21 for fiscal 2016 and fiscal 2017, respectively, increased 7 cents.
Kohl’s regularly introduces new brands in order to keep the inventory assortment fresh and drive customer traffic to its stores and website. Additionally, the company has been experiencing notable growth in its e-commerce business for the last few years. Moreover, Kohl’s has been making significant technology investments to support its online business and fortify its omni-channel platform.
Looking at the company’s performance, we note that it delivered better-than-expected results in the fiscal third quarter, wherein both earnings and revenues exceeded estimates. Moreover, the bottom line increased year-over-year.
However, sales declined on a yearly basis, due to a challenging sales environment and lower comparable store sales (comps). This signals that the company’s strategic initiative – ‘Greatness Agenda’ – which began in first-quarter fiscal 2014, to increase transactions per store and sales, has been reflecting weakness, of late. Moreover, comps declined in the first three quarters of fiscal 2016, which is raising concerns for the near term.
Nonetheless, management remains optimistic on its initiative to drive sales over the long term. Further, Kohl’s is making consistent efforts to improve its base business and gear up for the holiday season.
KOHLS CORP Price and Consensus
KOHLS CORP Price and Consensus | KOHLS CORP Quote
We expect the aforementioned factors to help the company sustain its sturdy momentum and stay afloat, even amid difficult times. Hence, we suggest investors to hold on to the stock as the rest is a wait-and-watch story.
Stocks that Warrant a Look
Some better-ranked stocks in the retail space include The Children's Place, Inc. (PLCE - Free Report) , Tilly's, Inc. (TLYS - Free Report) and Zumiez Inc. (ZUMZ - Free Report) , all flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained roughly 98.6% year to date.
Tilly’s, with a long-term earnings growth rate of 15.5%, has skyrocketed 133.3% in the past six months.
Zumiez, with a long-term earnings growth rate of 15%, has jumped 71.6% year to date.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>