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

Zacks Equity Research
The Trade Desk (TTD) closed the most recent trading day at $225.95, moving -0.41% from the previous trading session.

In the latest trading session, Kohl's (KSS) closed at $72.41, marking a +1.1% move from the previous day. This move outpaced the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, added 0.34%.

Prior to today's trading, shares of the department store operator had gained 3.71% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.21% and the S&P 500's gain of 4.67% 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 May 21, 2019. On that day, KSS is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 6.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.12 billion, down 2.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.05 per share and revenue of $19.94 billion. These totals would mark changes of +8.04% and -1.42%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for KSS. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.88% higher. KSS is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that KSS has a Forward P/E ratio of 11.85 right now. For comparison, its industry has an average Forward P/E of 11.85, which means KSS is trading at a no noticeable deviation to the group.

Investors should also note that KSS has a PEG ratio of 1.22 right now. 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. Retail - Regional Department Stores stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.

The Retail - Regional Department Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 6, putting it in the top 3% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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