Core Viewpoint - Kohl's shares experienced a significant surge, driven by meme stock interest and a price target increase from Goldman Sachs, despite the bank maintaining a sell rating on the stock [1][2]. Group 1: Stock Performance - As of 10:18 a.m. ET, Kohl's stock was up 28.9% with exceptionally high trading volume, having previously jumped as much as 105% in pre-market trading [2]. - Trading was halted due to a volatility trigger, indicating extreme market activity [2]. - Nearly the entire float of Kohl's, 104 million shares out of 112 million shares outstanding, had been traded before 10:30 a.m. ET [6]. Group 2: Meme Stock Dynamics - Kohl's fits the profile of a meme stock, characterized by being a small, consumer-facing company with a well-known brand and high short interest, which was 63% of the float as of mid-June [5]. - The recent surge in meme stocks, following Opendoor Technologies, suggests a renewed interest in this category [4]. Group 3: Company Challenges - Kohl's reported a net sales decline of 4.1% in the first quarter and anticipates comparable sales to decline by 4%-6% for the year, although it expects a modest profit [7]. - The company's current ratio is 1.1, indicating potential difficulties in meeting future financial obligations, especially if cash flow turns negative [8]. - The unlocking of purported real estate value may be challenging, as evidenced by similar situations with other retailers like Macy's [8].

Core Viewpoint - Kohl's Corp. experienced significant volatility in its stock price, reflecting characteristics of a meme stock, despite ongoing struggles in its business operations [1][3][5] Stock Performance - Kohl's shares surged over 100% from a closing price of $10.42 on Monday, but gains were largely erased shortly after the market opened [1] - By 10:30 a.m. ET, shares were still trading approximately 30% higher, with trading volume exceeding ten times the average of the past three months [2] Market Dynamics - There were no major corporate announcements or stock ratings influencing the stock's movement, but the high short interest of about 50% of outstanding shares contributed to its meme stock status [3] - Recent discussions on the Wall Street Bets forum indicated potential for a short squeeze, as retail investors recognized the stock's name and short interest [4] Business Challenges - Kohl's has been facing declining sales, increased competition, and is currently led by an interim CEO following the ousting of the former CEO due to a conflict of interest scandal [5] - The company projected a sales decline of 5% to 7% for fiscal 2025, with comparable sales expected to decrease between 4% and 6% [5]

Group 1 - The meme stocks, particularly Kohl's (KSS/KHP), have seen a narrowing increase of 25% [1] - Sunnova Energy experienced a significant rise of 50% [1] - Other notable stocks include WOOF with a 15.3% increase, Opendoor Technologies up by 14.6%, PLCE rising by 12.8%, and AMC Theatres with a 1% increase [1]

柯尔百货(KSS.N)恢复交易，涨61%。 ...

柯尔百货(KSS.N)在涨幅收窄至62%后触发熔断机制。 ...

柯尔百货(KSS.N)开盘一度飙升101%，现涨幅收窄至75%。 ...

Editor's note: Seeking Alpha is proud to welcome Caleb Harbert as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.I am a midwestern business owner that loves investing. Went to Purdue University for Mechanical Engineering and dropped out because my business was successful. I love real estate the most, where most my net worth is located, and then dabble/p ...

Core Viewpoint - The retail sector presents challenges for investors due to rapidly changing consumer preferences and retailer adaptability, with Costco and Kohl's demonstrating contrasting performance trends [1][2]. Costco - Costco is well-known for its bulk-selling warehouse model, charging an annual membership fee that grants access to a wide range of goods and services at competitive prices [4]. - The company has maintained high membership renewal rates, consistently around 90%, with a recent rate of 92.7% in the U.S. and Canada despite a membership fee increase [5]. - Membership numbers have grown to 79.6 million, up from 76.2 million, and the company operates 905 warehouses, having opened 20 to 30 new locations annually [6]. - Costco's operating income increased by 15.2% to $2.5 billion in the third quarter, reflecting strong profitability [6]. - Over the past five years, Costco's share price has risen by 203.8%, significantly outperforming the S&P 500's 98.7% increase [7]. - The stock has a high price-to-earnings (P/E) ratio of 56, indicating strong market expectations for continued profitability growth [8]. Kohl's - Kohl's offers a range of moderately priced merchandise but has struggled with declining sales and profits, with fiscal 2024 same-store sales dropping by 6.5% and earnings per diluted share falling by approximately 47% to $1.50 [9][10]. - The company has implemented various initiatives to drive traffic and sales, including integrating Sephora beauty shops and facilitating Amazon returns, but these efforts have not significantly improved sales [9]. - Management projects a further decline in same-store sales of 4% to 6% and diluted earnings per share to fall between $0.10 and $0.60 for the current fiscal year [11]. - The company has experienced leadership instability, with the recent CEO being terminated after a few months, complicating long-term turnaround efforts [11]. - Kohl's board reduced the quarterly dividend from $0.50 to $0.125, a move that typically signals a lack of confidence in future performance [12]. - Over the last five years, Kohl's share price has decreased by more than 55%, and it currently has a low P/E multiple of 9 [12]. Selection - Costco is identified as a better-managed company with consistent execution and growth opportunities, despite its higher valuation compared to Kohl's [13]. - Kohl's is viewed as a less attractive investment due to the current unlikelihood of a turnaround [13].

Market Outlook - Goldman Sachs raised its year-end forecast for the S&P 500 (SPX) to 6,900, up from 6,500, highlighting three stocks for investors to consider [1] - Other major investment banks, including Bank of America, are also increasing their S&P 500 forecasts, reflecting optimism around economic resilience and stabilizing inflation [2][3] - The current SPX stands at 6,263, with a year-to-date increase of 6.49% and a 14.8% rise over the past three months [3] Earnings Projections - Goldman projects S&P 500 earnings-per-share (EPS) to grow by 7% for both this year and next, driven by strong consumer demand and margin expansion [4] - The Federal Reserve is expected to support this growth through earlier and deeper interest rate cuts [4] Stock Recommendations - Goldman highlighted three stocks to watch: Kohl's, Intellia Therapeutics, and Gogo Inc., each linked to structural trends that could drive outperformance [6] Kohl's - Kohl's is viewed as a deep value play with a turnaround catalyst, currently trading down 33.40% for the year but up 20.5% over the past 90 days [7][8] - The company is focusing on inventory discipline, cost-cutting, and enhancing its loyalty program to stabilize revenue [9] - Kohl's is expected to benefit from lower bond yields when the Federal Reserve cuts rates, making it attractive for income-minded investors [10] Intellia Therapeutics - Intellia has seen a 45.3% increase in share price over the past month, focusing on CRISPR-based therapies for rare genetic disorders [11][12] - The company is recognized for its strong intellectual property portfolio and is positioned to benefit from the growing importance of gene therapies [13] Gogo Inc. - Gogo, a leader in business aviation connectivity, has seen its stock price rise 117% over the past three months, driven by strong recurring revenues and a 5G rollout [15][16] - The company has received FAA certification for 42 aircraft types, which covers 70% of its current North American customer base [16] - Gogo's growth is supported by a favorable capital markets backdrop and a strong recurring revenue model [19]

Core Insights - Kohl's stock has experienced a significant decline, with a loss of 80% over the past three years, closing at $8.12 compared to $40.54 previously [3][5] - The S&P 500 index, in contrast, gained 60% during the same period, highlighting the underperformance of Kohl's [3] - An initial investment of $5,000 in Kohl's would now be worth approximately $1,000, while the same investment in the S&P 500 would have grown to nearly $8,400 [4] Financial Performance - Kohl's has paid dividends of $0.50 per share per quarter until recently, when it was reduced to $0.125 per share, resulting in total dividends of nearly $700 over three years [4] - The total return from the initial $5,000 investment in Kohl's, after accounting for dividends, is approximately $1,700 [4] - The company projects earnings of $0.10 to $0.60 per share in 2025, which may not be sufficient to cover the new annual dividend of $0.50 [6] Market Challenges - Kohl's is facing ongoing challenges in the competitive retail industry, with same-store sales declining by 3.9% in the first fiscal quarter [5] - Management anticipates a further decline in same-store sales of 4% to 6% for the year, indicating a challenging outlook [5] - The reduction in dividends is often a warning sign of underlying issues within the company, which is evident in Kohl's current situation [5][7]