Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Kohl's as such a stock due to the following factors:
- KSS has 18x the normal benchmarked social activity for this time of the day compared to its average of 4.45 mentions/day.
- KSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $156.8 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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More details on KSS:
Kohl's Corporation operates department stores in the United States. It offers exclusive and national brand apparel, footwear, accessories, beauty, and soft home products to children, men, and women customers. The stock currently has a dividend yield of 2.6%. KSS has a PE ratio of 14.5. Currently there are 11 analysts that rate Kohl's a buy, 1 analyst rates it a sell, and 5 rate it a hold.
The average volume for Kohl's has been 3.0 million shares per day over the past 30 days. Kohl's has a market cap of $12.1 billion and is part of the services sector and retail industry. The stock has a beta of 1.04 and a short float of 14.4% with 8.90 days to cover. Shares are up 4.1% year-to-date as of the close of trading on Monday.
rates Kohl's as a
. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, attractive valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Multiline Retail industry average, but is less than that of the S&P 500. The net income increased by 0.4% when compared to the same quarter one year prior, going from $231.00 million to $232.00 million.
- Net operating cash flow has increased to $551.00 million or 20.56% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.43%.
- The debt-to-equity ratio is somewhat low, currently at 0.83, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.28 is very weak and demonstrates a lack of ability to pay short-term obligations.
- You can view the full Kohl's Ratings Report.