Kohl's (KSS) Is Weak On High Volume Today

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 Kohl's ( KSS) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Kohl's as such a stock due to the following factors:

  • KSS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $144.5 million.
  • KSS has traded 944,327 shares today.
  • KSS is trading at 5.37 times the normal volume for the stock at this time of day.
  • KSS is trading at a new low 4.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 2.8%. KSS has a PE ratio of 13.8. 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 $11.5 billion and is part of the services sector and retail industry. The stock has a beta of 1.09 and a short float of 14.4% with 9.43 days to cover. Shares are up 2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 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 -2.66%.
  • 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.
  • KOHL'S CORP has improved earnings per share by 8.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KOHL'S CORP reported lower earnings of $4.07 versus $4.20 in the prior year. This year, the market expects an improvement in earnings ($4.08 versus $4.07).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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