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Kohl's (KSS) Gains As Market Dips: What You Should Know

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Kohl's (KSS - Free Report) closed at $70.14 in the latest trading session, marking a +0.54% move from the prior day. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.16%.

Heading into today, shares of the department store operator had lost 1.76% over the past month, lagging the Retail-Wholesale sector's gain of 2.62% and the S&P 500's gain of 2.07% in that time.

Investors will be hoping for strength from KSS as it approaches its next earnings release, which is expected to be May 21, 2019. In that report, analysts expect KSS to post earnings of $0.68 per share. This would mark year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 2.14% from the year-ago period.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $6.05 per share and revenue of $19.94 billion. These results would represent year-over-year changes of +8.04% and -1.42%, respectively.

It is also important to note the recent changes to analyst estimates for KSS. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 0.88% higher. KSS currently has a Zacks Rank of #1 (Strong Buy).

Investors should also note KSS's current valuation metrics, including its Forward P/E ratio of 11.54. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 11.54.

Also, we should mention that KSS has a PEG ratio of 1.18. 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. KSS's industry had an average PEG ratio of 1.18 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 236, putting it in the bottom 8% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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