Kohl's Corp (KSS): Today's Highlighted Laggard In Retail

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Kohl's ( KSS) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 0.3%. By the end of trading, Kohl's fell 50 cents (-1%) to $48.42 on light volume. Throughout the day, 1.7 million shares of Kohl's exchanged hands as compared to its average daily volume of 2.7 million shares. The stock ranged in price between $48.28-$49.30 after having opened the day at $48.87 as compared to the previous trading day's close of $48.92. Other companies within the Retail industry that declined today were: Orchard Supply Hardware ( OSH), down 46%, ALCO Stores ( ALCS), down 5.5%, China Jo-Jo Drugstores ( CJJD), down 5.4%, and China Nepstar Chain Drugstore ( NPD), down 3.8%.
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Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $10.63 billion and is part of the services sector. The company has a P/E ratio of 11.5, below the S&P 500 P/E ratio of 17.7. Shares are up 13.8% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Kohl's a buy, three analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, bebe stores ( BEBE), up 9.2%, Rite Aid Corporation ( RAD), up 9%, QKL Stores ( QKLS), up 7.2%, and Jones Group ( JNY), up 5.9%, were all gainers within the retail industry with Home Depot ( HD) being today's featured retail industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

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