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Kohl's (KSS) Gains But Lags Market: What You Should Know

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Kohl's (KSS - Free Report) closed at $18.20 in the latest trading session, marking a +1.68% move from the prior day. The stock lagged the S&P 500's daily gain of 1.69%. At the same time, the Dow added 1.91%, and the tech-heavy Nasdaq gained 1.58%.

Investors will be hoping for strength from KSS as it approaches its next earnings release. On that day, KSS is projected to report earnings of -$1.41 per share, which would represent a year-over-year decline of 331.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.91 billion, down 28.73% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.71 per share and revenue of $17.56 billion, which would represent changes of -85.39% and -12.1%, respectively, from the prior year.

Investors might also notice 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.

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. The Zacks Consensus EPS estimate has moved 67.1% lower within the past month. KSS is currently a Zacks Rank #3 (Hold).

Investors should also note KSS's current valuation metrics, including its Forward P/E ratio of 25.33. This represents a no noticeable deviation compared to its industry's average Forward P/E of 25.33.

It is also worth noting that KSS currently has a PEG ratio of 3.17. 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. The Retail - Regional Department Stores industry currently had an average PEG ratio of 3.17 as of yesterday's close.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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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