Should You Buy Kohl’s stock At $59?
Kohl’s Corporation stock (NYSE: KSS), a department store that features apparel, footwear, accessories, soft home products, and housewares targeted to middle-income customers, has increased 18% over the last twenty-one trading days (one month) and currently stands at around $59. It should be noted that the broader S&P500 returned only a 2% growth during the same period. KSS reported strong fiscal Q2 2021 results with revenues and earnings beating estimates and also raised its guidance for the full year. Kohl’s now expects to generate full-year revenue growth in the low-20s percentage vs. a prior view for mid-to-high teens percentage and a record adjusted full-year earnings per share between $5.80 and $6.10, compared to its prior forecast range of $3.80 and $4.20. In Q2, the company saw its revenues grow 30% year-over-year (y-o-y) to $4.45 billion, driven by weak comparables from a year ago. While the department store operator saw sales recover to pre-pandemic levels with slight growth from $4.43 billion in Q2 2019, it still substantially trailed the broader retail industry. This could likely be due to supply chain challenges as it ended the quarter with inventory down 25% as compared to the two-year-ago period. However, the company’s EPS surged to a second-quarter record of $2.48 from $1.51 in fiscal 2019, due to a reduction in operating expenses.
Now, is KSS stock poised to grow further? The retailer could drive incremental growth in revenues through its partnership with brands such as Sephora, Eddie Bauer, and Tommy Hilfiger in the coming quarters. We believe that the company’s stock has momentum on its side and could see further gains in the near term. Specifically, there is a 55% chance of a rise for KSS stock over the next month (twenty-one trading days) based on our machine learning analysis of trends in the stock price over the last ten years. See our analysis on KSS Stock Chances of Rise for more details.
Calculation of ’Event Probability’ and ’Chance of rising’ using last 10 year data
 2.5% or higher return during a five-day period in 633 times out of 2517; Stock rose in the next 5 days in 315 of these 633 instances
 7.7% or higher return during a ten-day period in 304 times out of 2517; Stock rose in the next 10 days in 175 of these 304 instances
 18% or higher return during a twenty-one-day period in 159 times out of 2517; Stock rose in the next 21 days in 87 of these 159 instances
MORE FOR YOU
It is helpful to see how its peers stack up. KSS Stock Comparison With Peers to see how Kohl’s compares against peers on metrics that matter.
See all Trefis Featured Analyses and Download Trefis Data here