Back to top

Image: Bigstock

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

Read MoreHide Full Article

Kohl's (KSS - Free Report) closed at $68.54 in the latest trading session, marking a +1.5% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.

Prior to today's trading, shares of the department store operator had lost 6.79% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.34% and the S&P 500's loss of 0.19% in that time.

KSS will be looking to display strength as it nears 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, our latest consensus estimate is calling for revenue of $4.12 billion, down 2.14% from the prior-year quarter.

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.

Any recent changes to analyst estimates for KSS should also be noted by investors. Recent revisions tend to reflect the latest 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.88% higher. KSS currently has a Zacks Rank of #2 (Buy).

In terms of valuation, KSS is currently trading at a Forward P/E ratio of 11.17. For comparison, its industry has an average Forward P/E of 11.17, which means KSS is trading at a no noticeable deviation to the group.

Also, we should mention that KSS has a PEG ratio of 1.15. 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 1.15 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 235, putting it in the bottom 9% 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