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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 the most recent trading day at $46.46, moving +0.98% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.12%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.32%.

Heading into today, shares of the department store operator had lost 9.98% over the past month, lagging the Retail-Wholesale sector's gain of 4.56% and the S&P 500's gain of 3.31% in that time.

Wall Street will be looking for positivity from KSS as it approaches its next earnings report date. In that report, analysts expect KSS to post earnings of $1.57 per share. This would mark a year-over-year decline of 10.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.48 billion, down 1.9% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.33 per share and revenue of $19.93 billion. These totals would mark changes of -4.82% and -1.47%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KSS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. KSS is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, KSS is holding a Forward P/E ratio of 8.64. For comparison, its industry has an average Forward P/E of 8.64, which means KSS is trading at a no noticeable deviation to the group.

Also, we should mention that KSS has a PEG ratio of 0.86. 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 0.91 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 225, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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