Kohl’s Is Soaring After Reporting Earnings. Is Former Meme Stock KSS a Buy Here?

Core Insights - Kohl's shares surged over 40% on November 25 following a strong Q3 performance and an upward revision of its full-year guidance [1] - The appointment of Michael Bender as permanent CEO is seen as a pivotal moment for the company, having served as interim CEO since May [1] Financial Performance - Kohl's Q3 earnings indicate a significant turnaround, with stock up more than 280% from its year-to-date low [2][3] - The company revised its sales decline outlook to 4% for the year, an improvement from the previous guidance of at least 5% [4] Strategic Initiatives - Under Bender's leadership, Kohl's is focusing on value-oriented categories and discounts to attract lower- and middle-income consumers [3] - Bender noted "progressive improvement" in performance, indicating confidence in future growth [4] Valuation Metrics - Kohl's shares are trading at a significant discount to its book value, with land and buildings valued at $9.44 billion, exceeding its current enterprise value by about $1 billion [5] - The stock offers a dividend yield of 2.3%, appealing to income-focused investors [5] Technical Analysis - The stock is trading above all major moving averages (50-day, 100-day, 200-day), indicating a strong upward trend heading into 2026 [6] Market Sentiment - Prior to the Q3 earnings release, Wall Street consensus rated Kohl's stock as a "Moderate Sell" [7]