Surging Earnings Estimates Signal Upside for Kohl's (KSS) Stock

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].