Core Viewpoint - The article discusses the current landscape of heavily shorted stocks, highlighting the reasons traders engage in short selling and the potential for short squeezes as investment opportunities [2][3][4]. Summary by Sections Heavily Shorted Stocks - Stocks become heavily shorted when experienced traders and institutional investors believe the company is fundamentally overvalued, anticipating a price decline [2]. - Short sellers borrow shares, sell them at high prices, and aim to repurchase them at lower prices for profit, indicating a strong conviction about the company's risks [3]. Current Market Data - As of December 10, 2025, the top 10 most shorted stocks with market caps above $2 billion and free floats above 5 million are listed, ranked by short interest percentage [5]. - The most heavily shorted stock is Lucid Group, Inc. (NASDAQ: LCID) with a short interest of 52.70%, followed by Avis Budget Group, Inc. (NASDAQ: CAR) at 51.53% and Choice Hotels International, Inc. (NYSE: CHH) at 49.05% [6][7]. Market Characteristics - Heavily shorted stocks often reflect a battleground between negative fundamentals and speculative trading, where short squeezes can lead to significant, rapid gains but also come with high risk and volatility [8]. - Monitoring short interest can help identify potential short squeeze candidates, although timing such trades is challenging [8].

Financial Performance - Net sales decreased by 2.8% to $3.4 billion in the third quarter, with comparable sales down 1.7%[62] - Gross margin as a percentage of net sales increased by 51 basis points to 39.6%[62] - Selling, general, and administrative (SG&A) expenses decreased by 2.1% to $1.3 billion, representing 35.3% of total revenue, an increase of 55 basis points year-over-year[62] - Operating income was $73 million, a decrease from $98 million in the prior year, with an operating income margin of 2.1%[62] - Net income was $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in the prior year[62] - Other revenue decreased by $35 million in the third quarter and $63 million year to date, primarily due to lower sales to Kohl's credit card customers[72] Cash Flow and Inventory - Inventory decreased by 5% year-over-year to $3.9 billion, while cash flow from operating activities was $124 million[66] - Operating cash flow increased to $630 million year to date 2025, up from $52 million in the same period of 2024, driven by improved inventory management and higher net income[94] Future Projections - For the full year 2025, the company expects net sales to decrease by 3.5% to 4% and adjusted diluted earnings per share in the range of $1.25 to $1.45[67] - Capital expenditures are projected to be approximately $400 million, with a quarterly cash dividend of $0.125 per share declared[67] - Capital expenditures are projected to be approximately $400 million in 2025, focusing on the rollout of Sephora shops and expansion of E-commerce Fulfillment Centers[90] Impairments and Legal Settlements - The company recognized $4 million in impairments and other costs in Q3 2025, totaling $15 million year to date, including $11 million in non-cash charges related to asset impairments[79] - A gain of $129 million was recorded from a legal settlement regarding a credit card interchange fee lawsuit, significantly impacting net income[80] Debt and Credit Ratings - The corporate credit rating was downgraded from BB- to B+ by S&P, with a negative outlook, impacting borrowing costs[99] - The company issued $360 million in senior secured notes with a 10.000% interest rate due in 2030[108] - The company plans to repay $353 million of its 4.25% notes due in July 2025 at maturity[108] Compliance and Financial Position - The current ratio improved to 1.30 as of November 1, 2025, compared to 1.05 the previous year, driven by debt repayments and reduced borrowings[105][106] - The company is in compliance with all covenants related to its senior secured revolving credit facility as of November 1, 2025[107] Other Financial Information - As of November 1, 2025, cash and cash equivalents decreased to $144 million from $174 million year over year, with short-term investments of $8 million[91] - There have been no significant changes in contractual obligations as disclosed in the 2024 Form 10-K[108] - The company has not provided any financial guarantees from arrangements with unconsolidated entities as of November 1, 2025[109] - No special-purpose or off-balance sheet entities have been created for raising capital or incurring debt[110] - There have been no significant changes in critical accounting policies and estimates since the 2024 Form 10-K[111] - Market risks described in the 2024 Form 10-K remain unchanged[112] Digital Sales - Digital sales increased by 2.4% in the third quarter, representing 28% of net sales, compared to 26% in the same period last year[70]

Core Insights - Five Below (FIVE) is a notable stock in the Retail-Wholesale sector, currently outperforming its peers with a year-to-date return of 51.4% compared to the sector average of 7.5% [4] - The Zacks Rank system indicates a positive earnings outlook for Five Below, with a current rank of 2 (Buy) and a 1.4% increase in the consensus earnings estimate for the full year [3] - Five Below is part of the Retail - Miscellaneous industry, which has seen an average gain of 2.5% this year, further highlighting its strong performance within this specific group [5] Company Performance - Five Below has achieved a year-to-date return of 51.4%, significantly higher than the average gain of 7.5% in the Retail-Wholesale sector [4] - The stock's positive performance is supported by an improving analyst sentiment, as indicated by the 1.4% upward revision in earnings estimates over the past quarter [3] - In comparison, Kohl's (KSS) has also shown strong performance with a year-to-date return of 76% and a consensus EPS estimate increase of 97.6% over the past three months [4][5] Industry Context - The Retail-Wholesale sector consists of 197 individual stocks and currently holds a Zacks Sector Rank of 9, indicating its relative performance among 16 sector groups [2] - The Retail - Miscellaneous industry, to which Five Below belongs, ranks 157 in the Zacks Industry Rank, with an average gain of 2.5% this year [5] - Conversely, Kohl's operates within the Retail - Regional Department Stores industry, which has a higher ranking at 5 and has increased by 50.4% year to date [6]

Core Viewpoint - Kohl's stock has recently gained attention due to a significant price surge, but it is likely a stock to avoid for long-term investors due to ongoing revenue decline and lack of competitive advantage [2][10]. Company Performance - Kohl's stock surged nearly 43% in a single trading session following its Q3 2025 earnings report, which included an improved outlook for 2025 [3][4]. - The company has made efforts to refinance debt at favorable interest rates and cut costs, while also partnering with Sephora to attract younger customers [5]. - Despite these efforts, net sales fell by 4% in the first nine months of 2025, totaling $9.8 billion, indicating ongoing challenges in revenue generation [8]. Financial Metrics - Kohl's current market capitalization stands at $3 billion, with a price-to-earnings (P/E) ratio just above 15 [7]. - Net income improved from $61 million to $147 million in the first nine months of 2025, but this improvement is primarily due to cost-cutting measures rather than revenue growth [9]. Competitive Landscape - Kohl's lacks a meaningful competitive moat, as its products can be found elsewhere, making it vulnerable in an intensely competitive market [7][10]. - The company has not demonstrated a clear strategy to reverse declining sales, which raises concerns about its long-term viability [10][11].

Core Viewpoint - Kohl's (KSS) is positioned as a strong investment opportunity due to its improving earnings outlook and positive analyst sentiment [1][2]. Earnings Estimate Revisions - Analysts have shown growing optimism regarding Kohl's earnings prospects, leading to a rising trend in estimate revisions, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.78 per share, reflecting a decrease of 17.9% from the previous year, but the Zacks Consensus Estimate has increased by 86.75% over the last 30 days with three upward revisions and no negative changes [6]. - For the full year, the earnings estimate is projected at $1.26 per share, indicating a 16.0% decline from the prior year, yet five estimates have been raised recently without any negative revisions [7]. Zacks Rank and Performance - Kohl's currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock performance [3][8]. - Stocks with a Zacks Rank 1 have demonstrated an average annual return of +25% since 2008, suggesting a favorable outlook for Kohl's [3]. Stock Performance - The stock has appreciated by 47.1% over the past four weeks, driven by strong estimate revisions, indicating potential for further upside [9].

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks is challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 1: Momentum Investing Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [2] - Kohl's (KSS) is highlighted as a strong candidate, with a notable price increase of 47.1% over the past four weeks, indicating growing investor interest [3] - KSS has demonstrated sustained momentum, gaining 45.5% over the past 12 weeks, with a beta of 1.45, suggesting it moves 45% more than the market [4] Group 2: Valuation and Earnings Estimates - KSS has a Momentum Score of A, indicating a favorable entry point for investors looking to leverage its momentum [5] - The stock has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - KSS is trading at a low Price-to-Sales ratio of 0.17, meaning investors pay only 17 cents for each dollar of sales, suggesting it is undervalued [6] Group 3: Additional Opportunities - Besides KSS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Various Zacks Premium Screens are available to assist in identifying potential winning stocks based on different investing styles [8]

Group 1 - Jefferies raised the target price for Kohl's from $17 to $20 while maintaining a "Hold" rating [1]

Group 1 - Citigroup raised the target price for Kohl's Corporation from $19 to $23 while maintaining a "Neutral" rating [1] - Kohl's stock experienced a significant increase, rising nearly 8% after the announcement [1] - The company's Q1 performance exceeded expectations, contributing to the stock's positive movement [1]

Core Insights - The trading card market, particularly for sports and Pokémon cards, is experiencing a surge in demand, prompting retailers to expand their offerings in this category [2][4][5]. Retailer Strategies - Dick's Sporting Goods has launched Collectors Club Houses in 20 locations, with plans for further expansion, to cater to the growing interest in trading cards and memorabilia [2][7]. - Target has diversified its collectibles business, including various trading card categories, and reported a nearly 70% increase in trading card sales during the first half of the year [5]. Consumer Trends - The consumer response to trading cards has surpassed expectations, with many adults purchasing them as investments [3][7]. - The popularity of trading cards has been bolstered by the pandemic, as consumers had more disposable income from stimulus checks and increased time at home [5]. Market Performance - Trading cards, including baseball and Pokémon cards, have outperformed the S&P 500 in recent years, although predicting their future trajectory remains challenging [3][8]. - Analysts suggest that the growth in the collectibles market is driven by adult consumers, as traditional toy markets face demographic challenges [10].

Core Insights - US-based omnichannel retailer Kohl's has revised its full-year 2025 performance expectations downward due to weaker sales and earnings reported in Q3 [1][2] - The company anticipates a decline in net sales for fiscal 2025 between 3.5% and 4%, with comparable sales projected to fall between 2.5% and 3% [1][4] Financial Performance - For Q3 ended November 1, 2025, Kohl's reported net sales of $3.4 billion, a decrease of 2.8% year-on-year, and comparable sales declined by 1.7% [2] - Net income for Q3 fell to $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in Q3 2024 [2] - Gross margin as a percentage of net sales increased to 39.6%, up 51 basis points year-on-year, while operating income for the quarter was $73 million, down from $98 million a year earlier [2][5] Inventory and Dividends - Quarter-end inventory stood at $3.9 billion, which is 5% lower than the same point last year [3] - Kohl's declared a quarterly cash dividend of $0.125 per share [3] Year-to-Date Performance - For the first nine months of fiscal 2025, net sales totaled $9.8 billion, a decrease of 4% from the previous year, with comparable sales down 3.2% [4] - Gross margin for the nine-month period was 39.8%, an increase of 39 basis points year-on-year, and operating income rose to $412 million from $307 million a year earlier [5] - Net income for the nine-month period increased to $147 million, or $1.30 per diluted share, compared to $61 million, or $0.55 per diluted share, in the same period of the previous year [5]