Why Kohl's Stock Skyrocketed This Week

Core Viewpoint - Kohl's stock experienced a significant surge due to meme-stock trading and a short squeeze, with a 33.5% increase over the last week, while the S&P 500 rose only 1.5% [1][4]. Group 1: Stock Performance - Kohl's share price is still down approximately 9% in 2025 and 56% over the last three years despite the recent rally [2]. - The stock's surge was driven by its popularity among meme-stock traders, leading to a moderate short squeeze as short sellers were forced to buy back shares [4]. Group 2: Business Outlook - The company's performance outlook remains challenging, with guidance indicating a sales decline of 5% to 7% for the year and same-store sales projected to fall between 4% and 6% [5]. - The midpoint of Kohl's earnings target suggests a potential annual decline in profitability of around 64% [5]. Group 3: Investment Sentiment - Some investors are speculating that Kohl's commercial real estate holdings may be undervalued, although this investment thesis carries risks [6].