Kohl's (KSS) shares ended the last trading session 8% higher at $7.17. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 40.9% loss over the past four weeks.
Kohl's shares have been gaining on the optimism surrounding its effective inventory and expense management. Focus on key growth categories like Sephora, home decor, and impulse items, along with enhanced customer experience initiatives, are contributing to KSS’s success.
This department store operator is expected to post quarterly loss of $0.53 per share in its upcoming report, which represents a year-over-year change of -120.8%. Revenues are expected to be $3.13 billion, down 7.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Kohl's, the consensus EPS estimate for the quarter has been revised 94% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KSS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Kohl's is a member of the Zacks Retail - Regional Department Stores industry. One other stock in the same industry, Dillard's (DDS), finished the last trading session 1.1% lower at $317.25. DDS has returned -11.1% over the past month.
Dillard's' consensus EPS estimate for the upcoming report has changed -2.1% over the past month to $9.10. Compared to the company's year-ago EPS, this represents a change of -17.9%. Dillard's currently boasts a Zacks Rank of #4 (Sell).
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Kohl's Corporation (KSS): Free Stock Analysis Report Dillard's, Inc. (DDS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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