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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 at $65.50 in the latest trading session, marking a +1.71% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.8%. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 1.14%.

Prior to today's trading, shares of the department store operator had lost 7.88% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.96% and the S&P 500's loss of 3.2% in that time.

Wall Street will be looking for positivity from KSS as it approaches its next earnings report date. This 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.04 per share and revenue of $19.94 billion. These totals would mark changes of +7.86% and -1.44%, respectively, from last year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. KSS is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, KSS is currently trading at a Forward P/E ratio of 10.67. For comparison, its industry has an average Forward P/E of 10.67, which means KSS is trading at a no noticeable deviation to the group.

It is also worth noting that KSS currently has a PEG ratio of 1.09. 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 1.09 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 245, putting it in the bottom 5% 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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