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].

Core Viewpoint - Wall Street anticipates a year-over-year decline in Walmart's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Walmart is expected to report quarterly earnings of $0.58 per share, reflecting a year-over-year decrease of 3.3%, while revenues are projected to be $165.56 billion, an increase of 2.5% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.76% over the last 30 days, indicating a bearish sentiment among analysts regarding Walmart's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Walmart is lower than the consensus estimate, resulting in an Earnings ESP of -1.69%, which complicates the prediction of an earnings beat [10][11]. Historical Performance - In the last reported quarter, Walmart exceeded earnings expectations with a surprise of +1.54%, having beaten consensus EPS estimates in the last four quarters [12][13]. Market Reaction Factors - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment and stock performance [14][16].