Track market-moving stories before they get noisy

Kohl's (KSS) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Kohl's (KSS - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Kohl's currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for KSS that show why this department store operator shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For KSS, shares are up 6.09% over the past week while the Zacks Retail - Regional Department Stores industry is up 5.87% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 23.01% compares favorably with the industry's 6.35% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Kohl's have increased 15.95% over the past quarter, and have gained 32.59% in the last year. In comparison, the S&P 500 has only moved 3.41% and 16.58%, respectively.

Investors should also pay attention to KSS's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. KSS is currently averaging 4,170,290 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with KSS.

Over the past two months, 7 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost KSS's consensus estimate, increasing from $1.38 to $2.10 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineGiven these factors, it shouldn't be surprising that KSS is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Kohl's on your short list.

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Kohl's (KSS - Free Report) Kohl’s Corporation is a U.S.-based department store retailer headquartered in Menomonee Falls, WI. As of the second quarter of fiscal 2026, the company operated 1,151 stores and sold merchandise through Kohls.com and the Kohl’s App. The store base spans 49 states, and about 80% of Americans live within 15 miles of a Kohl’s location.

KSS is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Retail-Wholesale stock. KSS has a Momentum Style Score of B, and shares are up 23% over the past four weeks.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.72 to $2.10 per share. KSS boasts an average earnings surprise of +84.8%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, KSS should be on investors' short list.

When a stock drops 30% and the yield jumps to 26%, most investors see opportunity. Five companies on this list suggest the yield itself is the warning sign.

A big yield only matters if the company can keep paying it. Shares of Prospect Capital (NASDAQ:PSEC) have fallen 30.38% over the past year, which drives its annualized distribution to a yield of roughly 25.9%. A number like that usually signals stress, and buyers shouldn’t read it as a reward. The screen for this list started with payout coverage and free cash flow, then checked whether a falling share price was doing the work of expanding the yield.

Quick test you can run yourself: a dividend becomes unsustainable when earnings (measured the right way for the business model) and free cash flow stop covering it, and debt, asset sales, or one-time gains start filling the gap.

Prospect Capital (PSEC): A Yield Built on a Falling Price Prospect pays $0.035 per month, or $0.42 annualized. The stock price is driving that yield, because the payout has been shrinking. Shares are down 25.15% in the past month alone and 61.21% over five years.

Prospect is a business development company (BDC), so EPS is the wrong metric. The right one is net investment income (NII), and that fell to $0.15 per share from $0.17. That still stands above the $0.105 quarterly distribution. But the company’s own risk disclosure warns that distributions to common shareholders exceed net investment income. Net asset value per share fell from $6.56 to $5.71. Non-accrual loans rose to 0.7% of total assets from 0.3%, and net realized losses reached $223.7 million for the fiscal year. The payout has already been cut twice, from $0.06 to $0.045 and then to $0.035 starting in May 2026.

In Prospect’s favor, leverage is moderate. It sits at 28.6% net debt to total assets, and first-lien loans now make up 72.5% of the portfolio at cost. Here is what to check: 76% of its interest-bearing assets are floating rate, so falling rates drives NII toward the distribution. The company also has a $264.5 million bond maturity due in November 2026.

Hormel Foods (HRL): GAAP Earnings No Longer Cover the Check Hormel Foods (NYSE:HRL | HRL Price Prediction) pays $1.17 a year, a yield of about 5.8%. The quarterly payout barely moved, from $0.29 to $0.2925, while shares fell 43.8% over five years. Most of the yield’s rise is due to the falling share price.

Hormel cut its fiscal 2026 GAAP EPS guidance to $1.06 to $1.12, which is below the dividend. That puts the GAAP payout ratio at roughly 104% to 110%. Free cash flow tells the same story: fiscal 2025 operating cash flow minus capex came to $534.3 million, short of the $633.2 million paid in dividends. Revenue fell 2.4%, and sales guidance was cut to $12.1 to $12.2 billion.

Management is standing firm. “We remain committed to the dividend and are proud to have reached our 392nd consecutive quarterly payout.” Adjusted EPS guidance of $1.45 to $1.51 still covers the payout, and cash stands at $840 million. The payout comes under real pressure if adjusted earnings slip toward $1.17.

Polaris (PII): Strip Out Tariff Refunds and the Math Breaks Polaris (NYSE:PII) pays $2.72 annualized, a yield near 5.4%. Shares are down 24.51% over the past year, which expanding that yield.

Trailing diluted EPS came in at -$4.61. The raised fiscal 2026 adjusted EPS guide of $3.00 to $3.10 includes about $0.96 from one-time tariff refunds. Strip those out and you get $2.04 to $2.14, below the dividend. Shareholders’ equity also fell 29.4% to $836.5 million.

Revenue rose 9.2% to $2.02 billion, and powersports sales grew 17%. The verifiable risk is whether earnings excluding refunds climb back above the dividend once the refunds are gone.

Harley-Davidson (HOG): A Covered Payout on a Shrinking Business Harley-Davidson (NYSE:HOG) yields about 2.75% on a $0.1875 quarterly payout, which is roughly 41% of trailing EPS of $1.82. The yield is low, so the history is the warning: in 2020 the quarterly dividend fell from $0.38 to $0.02.

Today the payout is covered, but the business behind it is shrinking. Revenue fell 5.9%, operating income dropped 32.4%, and net income declined 25.8%. LiveWire is still guided to lose $70 million to $80 million. A demand shock would put the payout under pressure, because the core motorcycle unit’s guided operating income is just $10 million to $50 million.

Kohl’s (KSS): What a Trap Looks Like After It Closes Kohl’s (NYSE:KSS) now yields about 2.37%. Investors who chased its old payout took a 75% cut, from $0.50 to $0.125 per quarter, in 2025.

The reduced dividend costs about $14 million a quarter, against Q2 operating cash flow of $552 million, so coverage is comfortable. Even so, the Q2 EPS of $1.28 got a lift from about $100 million in tariff refunds. Full-year guidance includes roughly 65 cents of that benefit, while comparable sales fell 0.9%. Keep an eye on whether comps stabilize once the refunds stop.

What to Watch Before Reaching for Yield A dividend cut usually pulls the share price down with it, so income investors will lose twice. Track NII at Prospect, GAAP earnings and free cash flow at Hormel, and earnings without refunds at Polaris. On its own, a high yield doesn’t make a stock worth buying. (We laid out the seven signs a big payout may be about to be cut in a free dividend trap guide, which pairs well with the checks above.)

Contact [email protected] for any questions or corrections.

Kohl's Continues Partnership with Boys & Girls Clubs of America with $1.5 Million Donation to Support Youth Mental Health and Wellness Nationwide In honor of World Mental Health Day on October 10, Kohl’s (NYSE: KSS) today announced a $1.5 million commitment to continue its national partnership with Boys & Girls Clubs of America. The funding will expand trauma-informed care training across local Clubs nationwide, helping Club professionals create healthy, supportive spaces where young people can build resilience and thrive. Through this next chapter of support, Boys & Girls Clubs of America will equip more staff and Club leaders with specialized training to address youth emotional well-being, manage stress and foster positive development.

“Supporting kids and families is central to our commitment at Kohl’s, because we know that feeling safe and supported is foundational to a child’s success,” said Jennie Kent, Kohl’s chief legal and corporate affairs officer. “We are proud to partner with Boys & Girls Clubs of America to invest in the emotional well-being of young people nationwide, equipping staff with the tools to foster resilience and help kids navigate today's challenges with confidence.”

Meeting the Growing Need for Youth Well-Being

Creating safe spaces offers crucial support for young people navigating daily challenges. CDC data shows that more than 40% of young people deal with persistent sadness or stress, creating a critical need for positive youth environments. Boys & Girls Clubs serve as trusted safe spaces, with 91% of Club youth reporting they have an adult at their Club to talk to about their problems. Through Kohl’s support, Boys & Girls Clubs of America is expanding its trauma-informed curriculum across the country, following recent regional sessions where 100% of participating Clubs felt better prepared to support their youth.

“Trauma-informed Boys & Girls Clubs create safer, relationship-centered environments where young people feel seen, heard, and valued,” says Kate Endries, National Director of Trauma-Informed Practice for the Boys & Girls Clubs of America. “Through Kohl’s support, Clubs nationwide are strengthening staff practices, promoting well-being, and creating conditions for youth to thrive.”

A Long-Term Commitment to Shaping Brighter Futures

Building on an eight-year commitment to trauma-informed care, this investment marks the latest milestone in Kohl’s longstanding partnership with Boys & Girls Clubs of America. Since 2017, Kohl’s has donated over $21 million to support more than 4,700 local Clubs nationwide, helping Boys & Girls Clubs reach more than 4 million young people annually. In 2026, that support included back-to-school shopping grants, physical health and wellness grants for active play spaces, associate volunteering at local Clubs across the country, and continued sponsorship of the Boys & Girls Clubs of America Regional Youth of the Year events, which celebrate exceptional youth leaders nationwide.

Funding for the partnership is made possible through Kohl’s Cares® Goods for Good™ merchandise collections, which donate 100% of net profit to nonprofits supporting family health and wellness initiatives nationwide.

To join Kohl’s in supporting the Boys & Girls Clubs of America and make a difference for youth across the country, visit bgca.org.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

About Boys & Girls Clubs of America

For more than 160 years, Boys & Girls Clubs of America (BGCA.org) has provided a safe place for kids and teens to learn and grow. Clubs offer caring adult mentors, fun and friendship, and high-impact youth development programs on a daily basis during critical non-school hours. Boys & Girls Clubs programming promotes academic success, good character and leadership, and healthy lifestyles. Nearly 5,500 Clubs serve more than 4 million young people through Club membership and community outreach. Clubs are located in cities, towns, public housing and on Native lands throughout the country, and serve military families in BGCA-affiliated Youth Centers on U.S. military installations worldwide. The national headquarters is located in Atlanta. Learn more about Boys & Girls Clubs of America on Facebook and LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261009871668/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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On October 05, 2026, Kohl's Corp KSS shares rose 3.8% to a current price of $19.53. The stock has fluctuated between a 52-week high of $25.22 and a low of $11.38 over the past year.

GF Value™ verdict: Current price is $19.53, which is 18.1% above the GF Value™ of $16.54.GF Score™ is 71/100, indicating an above-average rating.Most notable signal: Insiders sold $1.6M worth of stock over the past 12 months, with no buying activity.Is KSS Overvalued or Undervalued?Kohl's Corp KSS is currently trading above its GF Value™, which is GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance projections. At a price of $19.53, the stock is assessed as 18.1% overvalued compared to its GF Value™ of $16.54. The GF Valuation label indicates that KSS is modestly overvalued, suggesting that there may be limited upside potential in the current market environment.

Being overvalued poses risks for potential investors, as the stock price may not sustain such levels without significant improvements in financial performance or market conditions. A margin of safety appears to be lacking, reinforcing the need for cautious evaluation before any investment decisions.

How Does KSS's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)8.5x7.8xForward P/E12.5xN/AKSS's current P/E ratio of 8.5x is 9% above its 5-year median P/E of 7.8x. This indicates that the stock is trading at a higher valuation compared to its historical standards, aligning with the GF Value™ verdict of being overvalued. The forward P/E of 12.5x suggests even more pronounced expectations for future earnings, which could further exacerbate the risk if those expectations are not met.

What Does KSS's GF Score™ Tell Us?The GF Score™ measures the overall quality of a stock based on various factors such as financial strength, profitability, growth potential, valuation, and momentum. KSS has a GF Score™ of 71/100, with the strongest sub-rank being momentum (10/10) and the weakest being growth (2/10).

MetricRatingGF Score™71/100Financial Strength5/10Profitability7/10Growth2/10Valuation6/10Momentum10/10The combination of these scores indicates that while KSS has strong momentum, suggesting positive short-term price performance, its growth potential remains weak. This imbalance could pose challenges for long-term investors, especially in an environment where sustained growth is crucial for maintaining valuations.

What Are Gurus and Insiders Doing with KSS?Currently, five gurus hold KSS shares, with three increasing their positions and six trimming their stakes in recent quarters. This mixed activity from gurus suggests a lack of consensus on the stock's future potential among seasoned investors.

Additionally, insider activity has been notably negative, with insiders selling $1.6M worth of stock over the past year and no buying activity reported. This pattern of selling could indicate a lack of confidence from those within the company, which may be a concern for potential investors looking for strong insider support.

What This Means for InvestorsGiven the current valuation metrics and GF Value™ assessment, Kohl's Corp KSS appears to be overvalued. The stock's price exceeds its intrinsic value, and the lack of strong insider buying combined with mixed guru sentiment suggests caution. Investors may want to carefully consider these factors along with the sustainability of dividends before making decisions.

For further insights, visit the Kohl's Corp KSS stock page for a complete analysis.

Frequently Asked QuestionsWhat is KSS's GF Score™?

KSS's GF Score™ is 71/100, indicating an above-average stock quality based on several fundamental indicators.

Is KSS overvalued or undervalued?

KSS is currently overvalued, with a GF Value™ of $16.54, representing an 18.1% premium over its current price of $19.53.

What is KSS's P/E ratio?

KSS's P/E (TTM) is 8.5x, which is 9% above its 5-year median of 7.8x, indicating the stock is trading at a higher valuation than its historical average.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Both Kohl's and Macy's have slashed their dividends before, both just raised guidance, and both are pitching themselves as turnaround stories. The question for retirees counting on that quarterly check is which payout actually has the staying power to survive…

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Kohl’s (NYSE:KSS | KSS Price Prediction) or Macy’s (NYSE:M): which one should an investor planning for retirement own right now if the goal is a dividend that keeps arriving? Both retailers have cut before, both trade as turnaround stories, and both just raised full-year guidance. Judged on which payout is more likely to survive, Macy’s comes out ahead.

Retail Business: Macy’s Is Growing While Kohl’s Shrinks Macy’s posted comparable sales growth of 2.7% in its latest quarter, led by Bloomingdale’s at +11.3% and Bluemercury at +6.2%. Management called it the company’s fifth consecutive quarter of comparable sales growth. Revenue of $5.059B beat the $4.80B consensus, with full-year comp guidance now at +1.0% to +1.5%.

Kohl’s moved the other way. Comparable sales fell 0.9% in Q2, store sales dropped 2%, and traffic was slightly down. Full-year guidance calls for comps flat to down 1.5%. Management summed up the problem directly: “We continue to see choiceful discretionary spending from our core low to middle income customer as they remain financially pressured.” The fix is reinvesting tariff refunds into opening-price-point proprietary brands, media and store payroll, while marketplace sales grew 88%. Winner: Macy’s.

Dividend Coverage: Kohl’s Cut Left It a Small Bill Kohl’s pays $0.125 per quarter, or $0.50 annually, for a yield of 2.9%. Last fiscal year the dividend cost $56 million against free cash flow of $1.008B. Management expects free cash flow of roughly $600 million this year, tariff benefit included, and guides adjusted EPS to $1.80-$2.40. That range carries a tariff-refund boost of about 65 cents, so underlying earnings are lower than the headline.

Macy’s pays $0.1915 quarterly, an annualized forward $0.766 on a stock at $22.64. Dividends cost $197 million last year versus free cash flow of $797M, alongside $250 million of buybacks. Real estate offers a thin cushion: asset monetization proceeds fell to $35 million from $75 million. Winner: Kohl’s, purely on coverage, because the 2025 cut reduced the obligation to a fraction of cash flow.

Cut Risk: Liquidity and History Favor Macy’s Kohl’s paid $0.5 per quarter through December 2024, then dropped to $0.125 starting in March 2025. It also fell from $0.704 in March 2020 to $0.25 in 2021 after a gap in payments. Cash reached $821 million with no ABL loans, but $360M of notes carry a 10.000% rate, and year-to-date interest expense hit $126 million. Management may hold extra cash to address debt when the non-call period comes up in 2027, so shareholder payouts compete with deleveraging. Analysts are cool: 2 Buy ratings against 3 Sells and 2 Strong Sells. Shares are down 10.05% year to date and 55.57% over five years.

Macy’s suspended its dividend after a $0.3775 payment in March 2020, restored it at $0.15 in 2021, and has moved it to $0.1824 in 2025 and $0.1915 in 2026. Cash stands at $1.294B, full-year interest expense should be roughly $90 million, and the stock is up 37.3% over the past year. Winner: Macy’s.

Verdict: Macy’s Owns the Safer Dividend For an income-focused retiree, Macy’s is the dividend to research first. It pairs positive comps with more cash, cheaper debt and a payout that has grown since reinstatement. Kohl’s fits only a deep-value investor comfortable with a trailing P/E of 8, treating the small dividend as a bonus rather than a paycheck. (The seven warning signs that a big yield is about to be cut are the whole subject of our free dividend trap guide.)

What would change the call: a Macy’s third quarter worse than its guided loss of 19 to 23 cents per share, or comps turning negative. On the other side, Kohl’s would need positive comps and a refinancing of its 10% notes without draining cash.

Contact [email protected] for any questions or corrections.

Key Takeaways EV-to-EBITDA offers a fuller view of valuation by accounting for debt, unlike traditional P/E ratios.KSS, LCUT, MATV, UGP and CLDT are screened as value stocks with low EV-to-EBITDA ratios.Each stock meets strict criteria, including valuation, trading volume, price, growth, and Value Score. Investors generally have a fixation on the price-to-earnings (P/E) strategy while seeking stocks trading at attractive prices. This straightforward, easy-to-calculate ratio is the most preferred among the valuation metrics in the investment toolkit for working out the fair market value of a stock. But even this ubiquitously used valuation metric is not without its pitfalls.

While the popularity of P/E stems from its simplicity, a more complicated and less-used metric called EV-to-EBITDA is often viewed as a better option, as it offers a clearer picture of a company’s valuation and earnings potential. EV-to-EBITDA has a more complete approach to valuation as it determines a firm’s total value. In contrast, P/E only considers a firm’s equity portion.

Kohl's Corporation (KSS - Free Report) , Lifetime Brands, Inc. (LCUT - Free Report) , Mativ Holdings, Inc. (MATV - Free Report) , Ultrapar Participacoes S.A. (UGP - Free Report) and Chatham Lodging Trust (CLDT - Free Report) are some stocks with impressive EV-to-EBITDA ratios.

EV-to-EBITDA is a Better Alternative, Here’s WhyAlso referred to as the enterprise multiple, EV-to-EBITDA is the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock, minus cash and cash equivalents. In essence, it is the entire value of a company. EBITDA, the other element, gives a clearer picture of a company’s profitability by removing the impact of non-cash expenses like depreciation and amortization that dampen net earnings. It is also often used as a proxy for cash flows.

Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. For this reason, EV-to-EBITDA is generally used to value potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.

P/E can’t be used to value a loss-making firm. A firm’s earnings are also subject to accounting estimates and management manipulation. In contrast, EV-to-EBITDA is harder to manipulate and can be used to value companies that have negative net earnings but are positive on the EBITDA front. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can also be used to compare companies with different levels of debt.

But EV-to-EBITDA has its shortcomings, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa). It is usually not appropriate when comparing stocks in different industries, given their diverse capital requirements.

As such, a strategy entirely based on EV-to-EBITDA might not yield the desired results.  But you can combine it with other key ratios such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen true value stocks.

Screening CriteriaHere are the parameters to screen for value stocks:

EV-to-EBITDA 12 Months-Most Recent less than X-Industry Median: A lower EV-to-EBITDA ratio represents a cheaper valuation.

P/E using (F1) less than X-Industry Median: This metric screens stocks that are trading at a discount to their peers.

P/B less than X-Industry Median: A lower P/B compared with the industry average implies that the stock is undervalued.

P/S less than X-Industry Median: The lower the P/S ratio, the more attractive the stock is, as investors will have to pay a smaller price for the same amount of sales generated by the company.

Estimated One-Year EPS Growth F(1)/F(0) greater than or equal to X-Industry Median: This parameter will help in screening stocks that have growth rates higher than the industry median.

Average 20-day Volume greater than or equal to 50,000: The addition of this metric ensures that shares can be traded easily.

Current Price greater than or equal to $5: This parameter will help in screening stocks that are trading at a minimum price of $5 or higher.

Zacks Rank less than or equal to 2: It is a fundamental truth that stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) have always managed to beat adversities and outperform the market.

Value Score of less than or equal to B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Here are our five picks out of the 14 stocks that passed the screen:

Kohl’s is a U.S.-based department store retailer, offering moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. This Zacks Rank #1 stock has a Value Score of A.

Kohl’s has an expected year-over-year earnings growth rate of 17.3% for the current fiscal year. The Zacks Consensus Estimate for KSS’s current fiscal-year earnings has been revised 39.7% higher over the last 60 days.

Lifetime Brands is a leading global provider of branded kitchenware, tableware and other products. This Zacks Rank #2 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lifetime Brands has an expected year-over-year earnings growth rate of 156.8% for 2026. The consensus estimate for LCUT’s 2026 earnings has moved up 184.9% over the past 60 days.

Mativ Holdings is a specialty materials company, offering a wide range of critical components and engineered solutions. This Zacks Rank #2 stock has a Value Score of A.

Mativ Holdings has an expected year-over-year earnings growth rate of 38.6% for the current year. The consensus estimate for MATV’s current-year earnings has been revised 14.1% upward over the past 60 days.

Ultrapar Participacoes is one of the largest distributors of liquefied petroleum gas in Brazil and a leading producer of petrochemicals and chemicals. This Zacks Rank #2 company has a Value Score of A.

Ultrapar Participacoes has an expected year-over-year earnings growth rate of 190% for 2026. The Zacks Consensus Estimate for UGP's 2026 earnings has been revised 21.7% upward over the past 60 days.

Chatham Lodging Trust is a lodging real estate investment trust that invests in premium-branded upscale extended-stay and select-service hotels. This Zacks Rank #2 company has a Value Score of A.

Chatham Lodging Trust has an expected year-over-year earnings growth rate of 32.4% for 2026. The consensus estimate for CLDT’s 2026 earnings has moved up 4.7% over the past 60 days.

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl's (NYSE: KSS) today announced that Ryan M. Waymire has been named Chief Merchandising Officer, reporting to CEO Michael J. Bender, effective September 28. Waymire has 25 years of experience at large retailers including Walmart, Amazon and Target, most recently serving as SVP of Fashion at Walmart U.S. He has a proven record of transforming merchandise strategies for a broad customer base and driving results by balancing fundamental merchandising excellence with innovation.

In the role of Chief Merchandising Officer, Waymire will be responsible for Kohl's overall merchandise strategy and all merchandising functions, including buying, omnichannel merchandising, product design and development, allocation and planning, sourcing, and product portfolio strategy.

"I am thrilled to have Ryan join the team. As we intentionally build our business for the future, Ryan will take the next step with our merchandising teams in modernizing our overall product offering - with customers at the center of all decisions," said Bender. "Ryan has deep experience in understanding how to refresh and drive a merchandise strategy for a broad U.S. customer base, and he has an innovative way of integrating meaningful collaborations and social media influencers into product stories. He is an energetic and inspirational leader, with strong partner relationships, and I know he will be an excellent addition to our senior leadership team. He will hit the ground running with our teams."

"I'm excited to join Kohl's at a transformational moment for the company and for retail," said Waymire. "Throughout my career, I've focused on helping retailers and brands deliver what customers want and need while also inspiring them with stylish, high-quality products that bring joy to their lives. I look forward to helping shape Kohl's merchandising strategy and delivering differentiated products and experiences that surprise and delight customers across the country."

Waymire has deep merchandise, fashion, brand management, and progressive executive leadership experience at several large retailers including Walmart, Wayfair, FabFitFun, Amazon, and Target. Most recently, he was SVP of Fashion at Walmart U.S. Prior to that, he was GM, Brand President for BirchLane at Wayfair, SVP of Merchandising and Brand Partnerships at FabFitFun, and managed apparel and brand partnership at Amazon. Earlier in his career, he spent nearly a decade at Target in progressive buying, sourcing, and merchandising roles. Waymire has an MBA from Saint Louis University.

Waymire replaces Nick Jones, who has been serving as Kohl's Chief Merchandising Officer since 2023.

"Nick has played a key leadership role in driving our merchandise strategy, curating our national and private brand portfolio, and improving processes in the way we work," said Bender. "I want to thank Nick for his leadership and contributions to Kohl's. We wish him all the best in his next chapter."

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The Company intends forward-looking terminology such as “will,” “believes,” “expects,” “may,” “should,” “could,” “intends,” “anticipates,” “estimates,” “plans,” or similar expressions to identify forward-looking statements. Forward-looking statements include, but are not limited to, statements regarding executive leadership transitions and the Company’s strategic direction. Forward-looking statements are based on management’s then-current views and assumptions and, as a result, are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, risks described more fully in Item 1A in the Company’s Annual Report on Form 10-K, in subsequent Quarterly Reports on Form 10-Q, and in other filings with the SEC, which are expressly incorporated herein by reference. Forward-looking statements relate only to the date initially made, and the Company undertakes no obligation to update them.

About Kohl’s

Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

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Kohl's (KSS - Free Report) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +132.73%. A quarter ago, it was expected that this department store operator would post a loss of $0.18 per share when it actually produced a loss of $0.13, delivering a surprise of +27.78%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Kohl's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $3.52 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.02%. This compares to year-ago revenues of $3.55 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Kohl's shares have lost about 13.4% since the beginning of the year versus the S&P 500's gain of 12.2%.

What's Next for Kohl's?While Kohl's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Kohl's was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.05 on $3.54 billion in revenues for the coming quarter and $1.38 on $15.38 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Regional Department Stores is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Macy's (M - Free Report) , is yet to report results for the quarter ended July 2026. The results are expected to be released on September 10.

This department store operator is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -9.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Macy's' revenues are expected to be $4.82 billion, up 0.2% from the year-ago quarter.

Kohl's (KSS - Free Report) reported $3.52 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 0.9%. EPS of $1.28 for the same period compares to $0.56 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.52 billion, representing a surprise of -0.02%. The company delivered an EPS surprise of +132.73%, with the consensus EPS estimate being $0.55.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Kohl's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Number of stores - Total: 1,151 compared to the 1,152 average estimate based on four analysts.Comparable store sales - YoY change: -0.9% compared to the -0.5% average estimate based on four analysts.Revenue- Net sales: $3.32 billion compared to the $3.33 billion average estimate based on four analysts. The reported number represents a change of -0.9% year over year.Revenue- Other revenue: $197 million versus $186.34 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -1% change.View all Key Company Metrics for Kohl's here>>>

Shares of Kohl's have returned -7.4% over the past month versus the Zacks S&P 500 composite's no change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

MarketBeat Week in Review – 06/01 - 06/05Kohl's NYSE: KSS reported a 0.9% decline in comparable sales during its second quarter of fiscal 2026, an improvement from earlier trends, as the retailer highlighted gains in proprietary brands, Kohl's Card sales, home, toys and digital. The company also raised its full-year outlook after receiving approximately $150 million in tariff refunds.

Chief Executive Officer Michael Bender said the quarter represented “another improvement in our comparable sales trend,” while operational discipline in expenses and inventory management strengthened the retailer's balance sheet and cash generation. He said Kohl's continues to serve consumers facing pressure from inflation in everyday costs such as gas and food, increasing the importance of value, relevant assortments and convenient shopping experiences.

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Kohl's Stock Soars After Better-Than-Feared QuarterFor the second quarter, Kohl's posted net income of $151 million, or $1.28 per diluted share. Year-to-date net income totaled $137 million, or $1.18 per diluted share. Chief Financial Officer Jill Timm said gross margin improved 305 basis points in the quarter, though roughly $100 million of the tariff refunds benefited cost of merchandise sold. Excluding the tariff effect, gross margin would have increased about 5 basis points, in line with the company's guidance.

Sales Trends Improve Across Key Categories Store sales declined 2% in the quarter, while digital sales increased 2.8%. Kohl's Card sales rose more than 1%, continuing a recovery that management attributed to targeted efforts to reengage loyalty customers as well as the return and expansion of categories and proprietary offerings. Timm said credit revenue, which declined 1% in the quarter, is now expected to track more closely with the company’s top-line performance rather than lag it.

Dillard’s Posted a Huge Earnings Beat—So Why Did the Rally Fade?Proprietary-brand sales increased 3%, supported by higher inventory depth and customer response to Kohl's value-oriented brands. However, management said women’s proprietary-brand performance was constrained after stronger-than-expected early-quarter sell-throughs left the company unable to replenish inventory quickly enough. Kohl's pulled forward fall receipts and made a larger inventory investment for the back half of the year.

Among categories, home delivered 1% sales growth, led by decor and small electrics. The company cited strength in brands including Shark, Ninja, KitchenAid and GreenPan. Kids was flat, though toys grew at a double-digit rate, driven by Lego, KPop Demon Hunters and value-focused toy displays. Juniors increased 10%, led by the SO brand and new product introductions.

Accessories were flat overall, but increased by the mid-single digits excluding Sephora at Kohl’s. Jewelry rose by the mid-single digits, and Kohl's plans to add 350 fine-jewelry case lines in the fourth quarter, bringing the total to 549 stores. It will also install elevated fashion-jewelry fixtures in 320 stores by November.

Sephora at Kohl’s sales declined 4%. Bender said expanded distribution of several major brands pressured results, while newer brands have not yet reached enough scale to offset those declines. Kohl’s expects the softer Sephora performance to continue through the rest of the year, although it plans new launches across fragrance, haircare and skincare, as well as holiday outposts in 130 stores.

Inventory, Marketplace and Customer Experience Initiatives Inventory declined approximately 3% from a year earlier, while receipts increased 7% in the quarter to support categories such as toys, jewelry and juniors. Kohl's reduced choice count by the mid-teens while increasing inventory depth by the mid-single digits. The company expects year-end inventory to be down by low single digits.

Kohl's Marketplace grew 88% year over year in the second quarter. Timm said that including Marketplace gross merchandise value, comparable sales would have declined only 0.2%, rather than 0.9%. The retailer is more than doubling its marketplace product and vendor selection this year to expand category coverage, address inventory gaps and support seasonal demand.

The company is also investing in its store and digital experiences. Store pickup now represents more than 20% of digital demand, while Kohl’s expanded same-day delivery through Instacart and launched a DoorDash partnership in July. Management said customers using its AI shopping assistant are showing higher conversion and revenue per visit, though adoption remains small.

Kohl’s said it is modernizing its digital platform, with most core customer journeys now moved to the new system. It also plans to add Klarna payment options ahead of the holiday season.

Capital Allocation and Raised Outlook Kohl's ended the quarter with $821 million in cash and cash equivalents and no borrowings under its asset-based lending facility. Timm said the company’s net cash position improved by more than $700 million from a year earlier.

The retailer repurchased $63 million of long-term debt during the quarter at a $6 million discount. Year to date, it has repurchased $113 million of debt at a $15 million discount. Kohl’s expects operating cash flow of roughly $950 million to $1 billion for the year and capital expenditures of $350 million to $400 million.

The company resumed share repurchases for the first time since 2022, planning to buy back approximately $100 million of stock in 2026 under its existing $3 billion authorization. It also returned $14 million through its quarterly dividend during the second quarter.

Comparable sales guidance: down 1.5% to flat versus 2025 Adjusted operating margin guidance: 3.5% to 4% Adjusted diluted EPS guidance: $1.80 to $2.40, including about $0.65 from tariff refunds Timm said the updated outlook excludes any future tariff refunds. The company plans to use the current refund proceeds to support value-oriented pricing, opening-price-point proprietary brands, media spending and store staffing.

Kohl’s also announced leadership changes, including the appointment of Elliott Rodgers as chief operating officer effective Sept. 9 and Arian Parisi to the newly created role of chief customer officer.

About Kohl's (NYSE:KSS)Kohl's Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl's has focused on broadening its product assortment and enhancing the in-store and online shopping experience.

The retailer's merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.

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Kohl's sales continue to slip as its shoppers continue to face household budgetary pressures. The department store chain reported quarterly earnings Wednesday (Aug. 26) showing a 0.9% decrease in both net and comparable sales, marking the 18th straight quarter in which Kohl's has seen revenues decline.

Four retailers reported Wednesday morning. All four beat expectations and raised guidance.

Yet a meaningful share of those profits arrived not from selling more to shoppers, but from a Supreme Court decision.

That is the single most important thing investors need to understand about this retail earnings season. The headline numbers look terrific. The underlying businesses are considerably more mixed. Both things are true at once, and telling them apart is now the whole job.

The $166 Billion DistortionWhen the Supreme Court struck down the IEEPA tariffs on February 20th, it triggered one of the largest corporate cash windfalls in recent memory. Roughly $166 billion had been collected from some 330,000 importers, and approximately $100 billion had been refunded as of July 31st. Retailers are booking those refunds now, and the amounts are enormous and wildly uneven:

Image Source: Zacks Investment Research

Walmart’s is the largest disclosed by any U.S. company. Lowe’s, at $80 million, received roughly one-ninth of what Home Depot did. That unevenness is precisely why cross-retailer margin comparisons this quarter are close to meaningless unless you normalize for it.

Abercrombie Shows Exactly How Much It MattersAbercrombie & Fitch (ANF - Free Report) deserves credit for the cleanest disclosure of the season. The company reported record second-quarter net sales of $1.27 billion, up 5%, and earnings of $4.17 per diluted share against a Zacks Consensus Estimate near $1.95. On its face, that translates to a 114% beat.

Except management specified that the IEEPA refund contributed approximately $100 million pre-tax, or $1.75 per diluted share. Back that out and underlying EPS is roughly $2.42 — still a genuine beat of about 24%, but a fundamentally different number.

The margin math tells the same story. Operating margin of about 20% included roughly 790 basis points from the refund. Ex-refund, it lands near 12% against 17.1% a year ago. And comparable sales were flat. Record revenue came from new stores and new geographies, not from existing stores selling more. Still, the stock soared more than 30% in early trading on Wednesday morning.

Image Source: StockCharts

One Retailer Didn’t Need the HelpWilliams-Sonoma (WSM - Free Report) was the standout, and for the right reasons. Comparable brand revenue rose 6.2%, accelerating from 4.8% last quarter, with total revenue up 6.7% and every brand positive. Management raised its full-year outlook. Non-GAAP EPS of $2.10 topped the $2.05 consensus.

That result is genuinely surprising. Home furnishings should be suffering alongside the home-improvement retailers, where Home Depot managed a 1.7% comp and Lowe’s just 0.2%. Williams-Sonoma is instead compounding, which argues the affluent consumer remains healthy and that execution can overcome a frozen housing market.

Kohl’s (KSS - Free Report) beat handily on earnings, with EPS of $1.28 against roughly $0.55 expected, improved free cash flow margin, and raised guidance. Operating margin was flat year over year at 7.4% and the top line is still shrinking — investors read the beat as cost control, not demand recovery.

Bath & Body Works (BBWI - Free Report) beat and raised despite net sales declining 2.3% to $1.51 billion, with adjusted EPS of $0.62 and operating income up to $216 million from $157 million. Management was refreshingly blunt: “Underlying business trends remain pressured.”

What the Consumer Data Actually SaysThe macro releases framing these results point in the same direction. Tuesday’s Conference Board index fell to 89.4, its lowest since January, but the internals split sharply: the Present Situation Index rose 6.8 points to 121.2 — its first improvement in four months — while Expectations fell 5.8 points to 68.2, further below the level historically associated with recession risk.

Consumers feel better about today and worse about tomorrow. That is a precise description of defensive spending: keep buying, trade down, defer anything large.

Wednesday’s core PCE rose 0.2% month over month, in line with forecasts. On an annual basis, core hold near 3.3% against the Fed’s 2% target. Prices are still rising faster than consumers believe their incomes will.

The retail data corroborates it. Growth has shifted from price-led to volume-led — driven by units rather than inflation. Traffic is rising at the largest, cheapest operators while ticket has stalled almost everywhere: up 1.1% at Walmart, roughly flat at Target, and down 2.5% at Sam’s Club.

Bottom LineFor investors, three conclusions follow. First, normalize everything. Any Q2 retail margin or EPS comparison that ignores tariff refunds is measuring the refund, not the business.

Second, watch what retailers do with the money. Walmart is putting its $2.9 billion into price rollbacks across food, general merchandise, consumables, and fashion; Target has committed to continued price investment. That is competitively rational and margin-dilutive — meaning the windfall converts into future price cuts rather than future earnings. It also intensifies pressure on mid-tier retailers with no comparable lever.

Third, the durable winners are the ones that didn’t need the help. Williams-Sonoma’s accelerating comps and Sam’s Club’s 7% transaction growth reflect real demand. Abercrombie’s flat comps and Kohl’s shrinking top line do not.

The consumer here is employed, still spending, and increasingly disciplined — defensive, not fragile. That environment rewards scale, price authority, and genuine traffic growth. One-time refunds flatter a quarter. They don’t change the trend.

Kohl's Corporation (KSS) Q2 2027 Earnings Call Transcript

Key Takeaways Kohl's trades below several benchmarks as management raised adjusted EPS guidance to $1.80-$2.40. Comparable sales fell 1.1% in Q1 and 0.9% in Q2, with full-year guidance from flat to down 1.5%. Cash rose to $821M as debt fell, but current-year earnings estimates dropped 7.6% over four weeks. Kohl's Corporation (KSS - Free Report) offers investors a clear trade-off. Valuation remains inexpensive against several benchmarks, while management has raised its earnings outlook and strengthened liquidity.

Comparable sales remain negative and recent earnings-estimate revisions have moved lower, leaving the second half as a key test for the recovery.

KSS Looks Cheap Against Several BenchmarksKSS has a forward 12-month price-to-earnings ratio of 12.85, below 13.74 for its Zacks sub-industry, 22.81 for the broader Zacks sector and 20.37 for the S&P 500. The discount gives the stock a clear relative-value argument.

Kohl's also carries a current-fiscal-year P/E of 8.97, a PEG ratio of 0.59 and a price-to-book ratio of 0.49. Still, the forward multiple sits above the stock's five-year median of 10.1, tempering the historical value case.

Kohl's Earnings Outlook Has Improved SharplyManagement lifted adjusted operating-margin guidance to 3.5%-4% from 2.8%-3.4% and raised adjusted earnings guidance to $1.80-$2.40 per share from $1.00-$1.60. The updated outlook includes the benefit of tariff refunds received in the second quarter.

Cost discipline can add leverage if sales stabilize. Selling, general and administrative expenses declined 1.3% in the first six months, interest expense fell to $126 million from $154 million and quarter-end inventory was down 3% year over year.

KSS Sales Trends Still Argue for CautionNet sales declined 1.2% in the first six months, while comparable sales fell 1.1% in the first quarter and 0.9% in the second. Full-year guidance still calls for net sales and comparable sales to range from flat to down 1.5%.

Macy's, Inc. (M - Free Report) offers a relevant department-store comparison. Macy's comparable sales increased 3% in its first quarter of 2026, and the company raised full-year comparable-sales guidance to 0.5%-1.2%.

Target Corporation (TGT - Free Report) provides a broader retail benchmark. Target's second-quarter comparable sales rose 3.8%, driven by a 3.6% increase in traffic, and it now expects full-year net sales growth around 5%.

Kohl's Balance Sheet Adds Strategic FlexibilityKohl's ended the second quarter with $821 million in cash and cash equivalents, up from $174 million a year earlier. Long-term debt fell to $1.33 billion from $1.52 billion, and revolver borrowings were zero at quarter-end.

Kohl's Corporation Total Long Term Debt (Quarterly)Kohl's plans $350-$400 million of capital expenditures, is maintaining an annual cash dividend of 50 cents per share and is restarting share repurchases of up to $100 million in fiscal 2026. It also repurchased $113 million of debt in the first six months at a $15 million discount.

KSS Estimate Revisions Complicate the Bull CaseProjected earnings growth for the current fiscal year is 23.5%, supporting the earnings-recovery argument. The direction of recent estimate changes is less favorable.

The current-fiscal-year earnings estimate declined 8.5% over the past week and 7.6% over the past four weeks. That contrast keeps the outlook mixed even after management raised its own guidance.

KSS Signals Favor Value Despite Mixed MomentumThe bottom line is that KSS has enough support to keep the buy case alive, but the sales recovery still requires confirmation. Better earnings guidance and liquidity support the case, while negative comparable sales and recent estimate cuts limit conviction.

KSS currently carries a Zacks Rank #1 (Strong Buy), along with a VGM Score of A, Value Score of A, Growth Score of B and Momentum Score of C. The Rank and A/B Style Scores are favorable signals, especially for value and growth, while the C Momentum Score is less supportive. The combination argues for measured optimism rather than treating the recovery as fully established. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kohl's Q2 earnings beat and raised outlook lift the setup, but holiday execution and sales stabilization must prove gains can outlast tariff-refund benefits.

NEW YORK--(BUSINESS WIRE)--Following the successful debut of Martha Stewart's first-ever kitchen electrics collection in April 2026 exclusively on Amazon, Stewart is expanding her collection to Kohl's stores nationwide and Kohls.com, allowing shoppers to experience the assortment of thoughtfully designed kitchen electrics in person. Kohl's stores will offer a curated selection of products tailored to their customers. The full assortment will be available at Kohls.com. This exciting expansion pr.

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Kohl's?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Kohl's (KSS - Free Report) holds a #2 (Buy) at the moment and its Most Accurate Estimate comes in at $0.63 a share five days away from its upcoming earnings release on August 26, 2026.

KSS has an Earnings ESP figure of +13.72%, which, as explained above, is calculated by taking the percentage difference between the $0.63 Most Accurate Estimate and the Zacks Consensus Estimate of $0.55. Kohl's is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

KSS is part of a big group of Retail and Wholesale stocks that boast a positive ESP, and investors may want to take a look at Murphy USA (MUSA - Free Report) as well.

Slated to report earnings on November 4, 2026, Murphy USA holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $8.39 a share 75 days from its next quarterly update.

Murphy USA's Earnings ESP figure currently stands at +1.12% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $8.30.

KSS and MUSA's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

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Customers can save up to 40% on back-to-school must-haves Aug. 19–23 while earning Kohl's Cash to check off even more of the list

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--The final weeks of back-to-school shopping are here, and Kohl's (NYSE: KSS) is bringing together some of the season's biggest savings in one event. During Kohl's Back-to-School Sale, Aug. 19–23, customers can save on back-to-school must-haves across apparel, shoes, backpacks, beauty, and dorm essentials—and earn Kohl's Cash® to put toward the next items on their list.

Save Now. Earn More for Later.

From classroom basics to college move-in, customers can save on select styles across nearly every back-to-school category during Kohl's Back-to-School Sale, including:

Up to 40% off shoes Up to 30% off jeans 30% off backpacks Up to 50% off school uniforms Up to 50% off back-to-college décor and storage Up to 50% off Sephora at Kohl's beauty favorites 25% off adidas Up to 20% off Nike shoes Customers can also earn $10 Kohl's Cash* for every $50 spent throughout the event. Plus, on August 22–23, Kohl’s will bring back its Kohl’s Cash Giveaway** with millions in Kohl’s Cash up for grabs in stores nationwide. Shoppers can receive $5 - $100 in Kohl’s Cash*** instantly, while supplies last.

Whether customers are shopping in stores, online, or need a last-minute item delivered, Kohl's is making back-to-school shopping easier than ever. Customers can now shop Kohl's nationwide through DoorDash, giving families another convenient way to get the essentials they need, right when they need them.

Turn Kohl's Cash Into More Back-to-School Must-Haves.

Families are looking for every opportunity to make their back-to-school budget go further. According to Deloitte's 2026 Back-to-School Survey, parents of K–12 students plan to spend an average of $557 per child this season. At Kohl's, spending that amount during an eligible Kohl's Cash earning event, could earn $110 in Kohl's Cash to put toward a future purchase during the applicable redemption period.

See How Far $110 in Kohl's Cash Can Go

From another wardrobe refresh to college move-in essentials, $110 in Kohl's Cash can go a long way. It could be put toward:

13 kids' Jumping Beans tees Two Nike backpacks and a Nike lunchbox Two pairs of Levi’s Jeans Two pairs of adidas tennis shoes College bed essentials from The Big One including comforter, sheet set and pillow Save Every Time You Shop.

Back-to-school savings don't end with this event. Customers can continue earning rewards and saving every time they shop at Kohl's through:

Kohl's Rewards****, Kohl's free-to-join loyalty program, where members earn 5% Rewards every day. Kohl's Card, which increases Rewards earnings to 7.5% on eligible purchases. For more information and to shop the Back-to-School Sale, visit Kohls.com/BackToSchool.

*Kohl's Cash® terms and exclusions apply. Not valid on Sephora at Kohl’s. Earn amount of Kohl's Cash® is approximate and may vary if additional coupons are applied to the purchase transaction. See coupon or ask an associate for details.

**NO PURCHASE NECESSARY. Open to legal residents of 50 US/DC, 18+. Cards available August 22 and 23, 2026. Cards are distributed in-person on a first-come, first-served basis starting at store opening, and only while supplies last. Limit 1 card per household. Kohl’s Cash® must be redeemed in-store on the same day. Kohl’s Cash® value varies between $5 and $100. Subject to Terms & Conditions. See store associate for T&Cs.

***PROMOTIONAL KOHL'S CASH® REDEEMABLE IN STORE ONLY FOR ONE TRANSACTION SAME DAY OF RECEIPT

Kohl's Cash® is not legal tender. No cash back. PROMOTIONAL KOHL'S CASH® REDEEM: Can be redeemed for one transaction during the stated redeem window with any other coupon; any unused amount will be forfeited. Limit of 1 per transaction. KOHL'S CASH® AND OTHER DOLLAR-OFF COUPONS WILL BE APPLIED PRIOR TO PERCENT-OFF TOTAL PURCHASE COUPONS. Kohl's Cash® may not be redeemed on (1) Sephora at Kohl’s merchandise; (2) Kohl's Cares® cause merchandise or other charitable items; (3) Gift Cards; (4) price adjustments; (5) payments to a Kohl's credit card or any third-party charge account; or (6) any services or fees, including taxes and shipping. RETURN VALUE OF MERCHANDISE PURCHASED WITH THIS PROMOTIONAL KOHL'S CASH® WILL BE SUBJECT TO ADJUSTMENT. RETURN KOHL’S CASH WILL NOT BE ISSUED UPON RETURN OF MERCHANDISE OR CANCELLATION OF ORDER. Nontransferable. See associate for details.

****Visit Kohls.com/Rewards for program details and terms and conditions.

About Kohl's

Kohl’s (NYSE: KSS) is a leading omnichannel retailer built on a foundation that combines great brands, incredible value and convenience for our customers. Kohl’s is uniquely positioned to deliver against its long-term strategy and its purpose to take care of families’ realest moments. Kohl's serves millions of families in its more than 1,100 stores in 49 states, online at Kohls.com, and through the Kohl's App. With a large national footprint, Kohl’s is committed to making a positive impact in the communities it serves. For a list of store locations or to shop online, visit Kohls.com. For more information about Kohl’s impact in the community or how to join our winning team, visit Corporate.Kohls.com.

SAN FRANCISCO--(BUSINESS WIRE)--Between new class schedules, sports practices, and the scramble to find the right size backpack and outfits, back-to-school season is one of the busiest shopping moments of the year and one of the most time-consuming. Today, we're excited to welcome Barnes & Noble, Carter's, and Kohl's to the Marketplace, giving parents and students back the time they'd otherwise spend running between stores, with school clothes, supplies, classic and new reads, and everyday.

Kohl's looks like a tough long-term bet. Sales are declining, margins are thin, and it is still burning cash, making meaningful shareholder growth hard to see.

Disposition executed under pre-established Rule 10b5-1 trading plan; Kent retains $4.71 million in direct holdings.

MENOMONEE FALLS, Wis.--(BUSINESS WIRE)--Kohl's (NYSE: KSS) today announced that John Schlifske has informed the Kohl's Board (the "Board") that after nearly 15 years of service, he is retiring from the Board for personal reasons and is stepping down as Chair. The Board has unanimously elected Wendy Arlin to serve as the next Chair, effective immediately. Arlin has been a Director on Kohl's Board since 2023, and she has chaired the Finance and Audit Committees since May 2025. "On behalf of Kohl'.