TheStreet Ratings quantitative stock model maintains a Buy recommendation on Kohls (KSS - Get Report) . Since the stock was upgraded to Buy from Hold on August 15, 2017, the shares have doubled in value rising as much as 107%.
All the stocks covered by TheStreet Ratings are evaluated daily by our quantitative model reviewing both fundamental analysis of the latest financial statements and technical analysis of share movements. If the weak stock performance today from Kohls is established as a new technical trend, the stock would be in jeopardy of an impending downgrade.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate KOHL'S CORP as a Buy with a ratings score of B. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, revenue growth, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the analysis by TheStreet Ratings goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 97.28% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KSS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- KOHL'S CORP has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, KOHL'S CORP increased its bottom line by earning $5.14 versus $3.13 in the prior year. This year, the market expects an improvement in earnings ($5.40 versus $5.14).
- Despite its growing revenue, the company underperformed as compared with the industry average of 4.7%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has significantly increased by 741.30% to $387.00 million when compared to the same quarter last year. In addition, KOHL'S CORP has also vastly surpassed the industry average cash flow growth rate of -32.66%.
- 40.68% is the gross profit margin for KOHL'S CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 1.78% trails the industry average.
- You can view the full analysis from the report here: KSS
-- Reported by Kevin Baker in Palm Beach Gardens, FL