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Kohl's (KSS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Kohl's (KSS) closed the most recent trading day at $53.30, moving -0.3% from the previous trading session. This move lagged the S&P 500's daily loss of 0.26%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the department store operator had gained 11.72% over the past month, outpacing the Retail-Wholesale sector's gain of 3.04% and the S&P 500's gain of 2.87% in that time.

Wall Street will be looking for positivity from KSS as it approaches its next earnings report date. This is expected to be August 20, 2019. The company is expected to report EPS of $1.56, down 11.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.48 billion, down 1.9% from the year-ago period.

KSS's full-year Zacks Consensus Estimates are calling for earnings of $5.31 per share and revenue of $19.93 billion. These results would represent year-over-year changes of -5.18% and -1.47%, respectively.

Investors should also note any recent changes to analyst estimates for KSS. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. KSS is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, KSS is holding a Forward P/E ratio of 10.07. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 10.07.

We can also see that KSS currently has a PEG ratio of 1.01. 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 was holding an average PEG ratio of 1.01 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 244, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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