Kohl's (KSS) Moves 11.8% Higher: Will This Strength Last?

Kohl's (KSS) shares rallied 11.8% in the last trading session to close at $24.78. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 30.1% gain over the past four weeks.

Kohl’s recent stock surge appears to reflect optimism surrounding its holiday-season initiatives. The retailer’s focus on value-driven gifting, refreshed product assortments and deeper inventory across popular categories may help strengthen its competitive positioning. Expanded same-day delivery partnerships, flexible payment options and AI-powered shopping tools could further improve shopping convenience and support customer engagement during the crucial holiday season.

This department store operator is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of -110%. Revenues are expected to be $3.54 billion, down 1.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Kohl's, the consensus EPS estimate for the quarter has been revised 171.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on KSS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Kohl's is part of the Zacks Retail - Regional Department Stores industry. Macy's (M), another stock in the same industry, closed the last trading session 3.2% higher at $24.17. M has returned 5.4% in the past month.

Macy's' consensus EPS estimate for the upcoming report has changed -0.9% over the past month to -$0.19. Compared to the company's year-ago EPS, this represents a change of -311.1%. Macy's currently boasts a Zacks Rank of #3 (Hold).

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This article originally published on Zacks Investment Research (zacks.com).

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