Kohl's Stock Testing a Key Trendline Ahead of Earnings

Core Viewpoint - Kohl's Corp (NYSE:KSS) has experienced significant stock volatility, reaching a 12-month high of $25.22 on December 1, but has since dropped 24% in 2026, with a recent 12 losses in 13 sessions, testing support at its 200-day moving average ahead of its fourth-quarter earnings report scheduled for March 10 [1][3]. Group 1: Stock Performance - KSS has only finished higher after three of its last eight earnings reports, with a notable 42.5% bull gap in November [1]. - The stock has averaged a move of 17.3% during earnings reports, with investors anticipating a larger-than-usual 18.9% move for the upcoming report [1]. Group 2: Short Interest and Market Sentiment - There is significant contrarian potential for KSS, as short interest has decreased by 8% in the last two reporting periods, yet 26.77 million shares sold short represent 24.7% of the available float [3]. - A potential bounce back in KSS could lead to an unwinding of bearish bets, potentially fueling a rally [3]. Group 3: Analyst Ratings and Technical Indicators - All 12 brokerages covering KSS have a "hold" or worse rating, indicating a cautious outlook [4]. - The 14-Day Relative Strength Index (RSI) for KSS is nearing "oversold" territory at 30, suggesting potential for a rebound [4]. Group 4: Options Activity - In the options market, KSS has a 10-day call/put volume ratio of 7.04, which is higher than 98% of all other annual readings, indicating strong interest in call options [5]. - Given the high short interest, some call options may be used by bearish bettors as a hedge [5].