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

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In the latest trading session, Kohl's (KSS - Free Report) closed at $47.11, marking a -1.55% move from the previous day. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the department store operator had lost 4.83% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.29% and the S&P 500's gain of 7.86% in that time.

KSS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.57, down 10.8% from the prior-year quarter. 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 might also notice recent changes to analyst estimates for KSS. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. KSS is currently a Zacks Rank #4 (Sell).

Investors should also note KSS's current valuation metrics, including its Forward P/E ratio of 8.98. Its industry sports an average Forward P/E of 8.98, so we one might conclude that KSS is trading at a no noticeable deviation comparatively.

It is also worth noting that KSS currently has a PEG ratio of 0.9. 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 0.92 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 224, which puts 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.

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


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