Back to top

Image: Bigstock

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

Read MoreHide Full Article

Kohl's (KSS - Free Report) closed at $68.02 in the latest trading session, marking a +1.27% move from the prior day. This move outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.13%, while the tech-heavy Nasdaq added 1.51%.

Coming into today, shares of the department store operator had lost 11.17% in the past month. In that same time, the Retail-Wholesale sector gained 3.9%, while the S&P 500 gained 1.92%.

Wall Street will be looking for positivity from KSS as it approaches its next earnings report date. This is expected to be March 7, 2019. The company is expected to report EPS of $2.15, up 14.97% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.69 billion, down 1.34% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.48 per share and revenue of $19.64 billion. These totals would mark changes of +30.79% and +2.87%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KSS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.83% higher. KSS is currently a Zacks Rank #3 (Hold).

Investors should also note KSS's current valuation metrics, including its Forward P/E ratio of 12.26. This represents a premium compared to its industry's average Forward P/E of 12.12.

It is also worth noting that KSS currently has a PEG ratio of 1.84. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.23 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 195, which puts it in the bottom 24% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kohl's Corporation (KSS) - free report >>

Published in