1 Meme Stock to Avoid Like the Plague

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].