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

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Kohl's (KSS - Free Report) closed the most recent trading day at $66.34, moving +1.97% from the previous trading session. This change outpaced the S&P 500's 0.85% gain on the day. Meanwhile, the Dow gained 1.15%, and the Nasdaq, a tech-heavy index, added 0.77%.

Heading into today, shares of the department store operator had lost 3.04% over the past month, outpacing the Retail-Wholesale sector's loss of 9.73% and the S&P 500's loss of 9.35% in that time.

Investors will be hoping for strength from KSS as it approaches its next earnings release, which is expected to be March 7, 2019. On that day, KSS is projected to report earnings of $2.15 per share, which would represent year-over-year growth of 14.97%. Meanwhile, our latest consensus estimate is calling for revenue of $6.69 billion, down 1.34% from the prior-year quarter.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $5.52 per share and revenue of $19.64 billion. These results would represent year-over-year changes of +31.74% and +2.87%, respectively.

Any recent changes to analyst estimates for KSS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KSS is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, KSS is currently trading at a Forward P/E ratio of 11.79. Its industry sports an average Forward P/E of 10.39, so we one might conclude that KSS is trading at a premium comparatively.

Meanwhile, KSS's PEG ratio is currently 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.06 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 198, which puts it in the bottom 23% 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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