Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Kohl's (KSS - Free Report) closed at $44.27, marking a -1.86% move from the previous day. This move lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Coming into today, shares of the department store operator had lost 7.18% in the past month. In that same time, the Retail-Wholesale sector lost 6.94%, while the S&P 500 lost 5.58%.

Investors will be hoping for strength from KSS as it approaches its next earnings release, which is expected to be August 20, 2019. In that report, analysts expect KSS to post earnings of $1.53 per share. This would mark a year-over-year decline of 13.07%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, down 1.75% from the year-ago period.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $5.29 per share and revenue of $19.89 billion. These results would represent year-over-year changes of -5.54% and -1.66%, respectively.

Any recent changes to analyst estimates for KSS should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.64% lower. KSS currently has a Zacks Rank of #4 (Sell).

In terms of valuation, KSS is currently trading at a Forward P/E ratio of 8.52. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 8.52.

Also, we should mention that KSS has a PEG ratio of 0.85. 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 0.85 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 223, 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.

To follow KSS in the coming trading sessions, be sure to utilize Zacks.com.


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