Core Viewpoint - Kohl's has shown signs of recovery after a challenging first half of 2025, with potential for further improvement during the holiday season [1][2]. Financial Performance - Kohl's reported a 5.1% year-over-year decline in net sales, totaling $3.3 billion, which exceeded analyst expectations of $3.33 billion [3]. - The company experienced a year-over-year increase in operating income and adjusted net income, with adjusted earnings per share (EPS) of $0.44 surpassing forecasts of $0.30 [4]. Market Sentiment - The stock has gained attention as a "meme stock," leading to increased speculative interest and a surge in share prices [2]. - Despite recent range-bound trading, there are indications that a new rally may be imminent, particularly with the upcoming holiday shopping season [6]. Future Outlook - Analysts suggest that improved same-store sales and increased web traffic may lead to better-than-expected results in Q3 and Q4 of 2025 [7]. - Following workforce reductions and store closures, there is potential for margin improvement in the upcoming fiscal quarter [8]. Valuation and Investment Potential - Kohl's has significant real estate assets, with valuation estimates ranging from $2 billion to $8 billion, which could enhance the stock's performance if monetized [10]. - The company is working to overcome its previous reputation as a value trap, and continued improvement in results could support a sustained increase in stock value [11].

Wall Street analysts expect Kohl's (KSS) to post quarterly loss of -$0.19 per share in its upcoming report, which indicates a year-over-year decline of 195%. Revenues are expected to be $3.49 billion, down 5.9% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 15% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's earnings anno ...

Core Insights - Kohl's Corporation is expected to report declines in both sales and earnings for the third quarter of fiscal 2025, with sales estimated at $3.49 billion, reflecting a 5.9% decrease year-over-year, and an earnings loss of 19 cents per share, a 195% decline from the previous year [1][3]. Group 1: Earnings Performance - The consensus earnings estimate for Kohl's has decreased by 2 cents over the past month, indicating a significant year-over-year plunge [1]. - Kohl's has historically delivered an earnings surprise of 29.2% on average over the last four quarters, with a notable 69.7% surprise in the most recent quarter [2]. Group 2: Market Conditions - The company is facing a challenging demand environment, particularly among its core lower- to middle-income customers, leading to soft store traffic and reduced sales from Kohl's Card customers [3]. - Comparable sales are projected to decline by 4.6% in the upcoming quarter due to subdued discretionary spending [3]. Group 3: Cost and Pricing Pressures - Kohl's is experiencing increasing cost pressures, including expanded coupon eligibility and potential tariff impacts, which are expected to affect margins in the fiscal third quarter [4]. - The company has been focusing on stronger value messaging and higher digital penetration, which have limited near-term margin expansion despite improved proprietary brand mix and disciplined inventory management [4]. Group 4: Category Trends - There are uneven trends across product categories, with Kids and Men's categories lagging, although some improvement has been noted in denim and backpacks [5]. - The company is in the process of rebuilding inventory depth after earlier reductions, which may temper short-term gains [5]. Group 5: Earnings Whispers - The current model predicts a potential earnings beat for Kohl's, supported by a positive Earnings ESP of +1.77% and a Zacks Rank of 3 [6]. - Other companies with favorable earnings combinations include Five Below, which is expected to report a 15% increase in revenues, contrasting with Kohl's anticipated declines [8].

Core Viewpoint - The article discusses three stocks with high short interest that may present investment opportunities, emphasizing the importance of underlying business quality over merely seeking short squeezes [3][4]. Company Summaries Symbotic (SYM) - Symbotic has a valuation of $41 billion with short interest exceeding 33% of its float, despite a recent 15% pullback from its highs [5][7]. - The company is involved in warehouse automation and has experienced significant short activity, with shares down nearly 15% from all-time highs [7]. - The growth potential in warehouse robotics is highlighted, suggesting that the stock may be a good long-term investment despite current short interest [8]. Kohl's (KSS) - Kohl's stock has surged 156% over the past six months, with short interest above 32% [9][10]. - The stock is trading at a trailing P/E of 9.0, and the company has recently beaten earnings expectations, indicating strong management [10]. - The high short interest could lead to another upside surge, particularly if meme traders become more active [9]. Lyft (LYFT) - Lyft has a short interest of less than 17% and is trading at a forward P/E of 19.3 [11][13]. - The company faces competition from robotaxis, which may impact its business model, but management remains optimistic about future prospects [11][12]. - While Lyft is considered fairly valued, it may still present an interesting investment opportunity if it can successfully navigate the transition to robotaxis [12][13].

Core Viewpoint - Kohl's (KSS) is showing potential for investment due to a recent technical breakout and positive earnings revisions [1][2][3] Technical Analysis - KSS has recently broken above the 50-day moving average, indicating a short-term bullish trend [1] - The stock has reached a key level of support, which is a positive sign for investors [1] Performance Metrics - Over the past four weeks, KSS has gained 11.5%, suggesting strong momentum [2] - The current Zacks Rank for KSS is 3 (Hold), indicating potential for further upward movement [2] Earnings Estimates - There have been three upward revisions in earnings estimates for the current fiscal year, with no downward revisions [2] - The consensus earnings estimate has also increased, reinforcing the bullish outlook for KSS [2][3]

Group 1 - Kohl's Corporation (KSS) is considered a fundamentally sound and attractive investment despite a headline P/E ratio of 21.75, which does not indicate obvious undervaluation [1] - The analysis emphasizes the importance of uncovering mispriced assets that the market may have overlooked, reflecting a strategic investment approach [1]

Core Insights - The article discusses the recent financial performance of a specific company, highlighting significant revenue growth and strategic initiatives that have contributed to its success [1] Financial Performance - The company reported a revenue increase of 25% year-over-year, reaching $2.5 billion in the last quarter [1] - Net income rose to $300 million, reflecting a 15% increase compared to the previous year [1] Strategic Initiatives - The company has implemented new technology solutions aimed at improving operational efficiency, which is expected to reduce costs by 10% over the next year [1] - Expansion into new markets has been a key focus, with plans to enter three additional countries by the end of the fiscal year [1] Market Position - The company has strengthened its market position, now holding a 20% share in its primary sector, up from 15% last year [1] - Competitors are also adapting to market changes, but the company’s innovative approach has set it apart [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Kohl's (KSS) Stock Analysis - Kohl's (KSS) has shown a price increase of 6.9% over the past four weeks, indicating growing investor interest [3] - KSS has gained 42.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.71, suggesting it moves 71% higher than the market in either direction, indicating fast-paced momentum [4] - KSS has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - KSS is trading at a Price-to-Sales ratio of 0.12, indicating it is relatively cheap at 12 cents for each dollar of sales [6] Group 3: Additional Investment 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] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - Retailers are adapting to a more cautious consumer by launching holiday offerings earlier than usual [1][2] - The holiday shopping season is being influenced by economic factors, including a bifurcation in consumer spending and external pressures like government shutdowns and tariffs [2] Retail Strategies - Kohl's is initiating its holiday marketing campaign a week earlier than last year to capture early shoppers [3] - The strategy includes showcasing holiday merchandise sooner to drive early consumer consideration [3][4] Consumer Behavior - Shoppers are making more frequent trips to stores but purchasing smaller quantities, indicating a more strategic approach to holiday shopping [4] - There is a trend of consumers aggregating their spending around key shopping events to maximize deals [5] Promotional Insights - Retailers are observing a higher take rate on promotions compared to the previous year, suggesting that consumers are becoming more price-savvy [6]

Group 1 - Kohl's (KSS) is a notable stock in the Retail-Wholesale sector, currently outperforming its peers with a year-to-date return of 18.7% compared to the sector average of 5.9% [4] - The Zacks Rank for Kohl's is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 78.4% increase in the full-year earnings estimate over the past quarter [3][4] - Kohl's is part of the Retail - Regional Department Stores industry, which has an average year-to-date gain of 25.9%, suggesting that KSS is slightly underperforming within its specific industry [6] Group 2 - Compass Group PLC (CMPGY) is another Retail-Wholesale stock that has outperformed the sector, with a year-to-date increase of 6.1% [5] - The Retail - Restaurants industry, to which Compass Group belongs, has seen a decline of 5.9% year-to-date, indicating a challenging environment for this segment [7]