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

In the latest trading session, Kohl's (KSS) closed at $25.70, marking a +0.63% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the department store operator had lost 9.08% in the past month. In that same time, the Retail-Wholesale sector lost 9.13%, while the S&P 500 lost 9.7%.

Investors will be hoping for strength from Kohl's as it approaches its next earnings release. In that report, analysts expect Kohl's to post earnings of $0.51 per share. This would mark a year-over-year decline of 69.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.22 billion, down 8.24% from the year-ago period.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $3.19 per share and revenue of $18.18 billion. These results would represent year-over-year changes of -56.48% and -6.44%, respectively.

Investors should also note any recent changes to analyst estimates for Kohl's. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Kohl's is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note Kohl's's current valuation metrics, including its Forward P/E ratio of 8. Its industry sports an average Forward P/E of 7.4, so we one might conclude that Kohl's is trading at a premium comparatively.

We can also see that KSS currently has a PEG ratio of 1. 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. The Retail - Regional Department Stores was holding an average PEG ratio of 0.66 at yesterday's closing price.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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.

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


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