Group 1 - Kohl's Corporation (KSS) is considered a fundamentally sound and attractive investment despite a headline P/E ratio of 21.75, which does not indicate obvious undervaluation [1] - The analysis emphasizes the importance of uncovering mispriced assets that the market may have overlooked, reflecting a strategic investment approach [1]

Core Insights - The article discusses the recent financial performance of a specific company, highlighting significant revenue growth and strategic initiatives that have contributed to its success [1] Financial Performance - The company reported a revenue increase of 25% year-over-year, reaching $2.5 billion in the last quarter [1] - Net income rose to $300 million, reflecting a 15% increase compared to the previous year [1] Strategic Initiatives - The company has implemented new technology solutions aimed at improving operational efficiency, which is expected to reduce costs by 10% over the next year [1] - Expansion into new markets has been a key focus, with plans to enter three additional countries by the end of the fiscal year [1] Market Position - The company has strengthened its market position, now holding a 20% share in its primary sector, up from 15% last year [1] - Competitors are also adapting to market changes, but the company’s innovative approach has set it apart [1]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Kohl's (KSS) Stock Analysis - Kohl's (KSS) has shown a price increase of 6.9% over the past four weeks, indicating growing investor interest [3] - KSS has gained 42.9% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.71, suggesting it moves 71% higher than the market in either direction, indicating fast-paced momentum [4] - KSS has a Momentum Score of B, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - KSS is trading at a Price-to-Sales ratio of 0.12, indicating it is relatively cheap at 12 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides KSS, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - Retailers are adapting to a more cautious consumer by launching holiday offerings earlier than usual [1][2] - The holiday shopping season is being influenced by economic factors, including a bifurcation in consumer spending and external pressures like government shutdowns and tariffs [2] Retail Strategies - Kohl's is initiating its holiday marketing campaign a week earlier than last year to capture early shoppers [3] - The strategy includes showcasing holiday merchandise sooner to drive early consumer consideration [3][4] Consumer Behavior - Shoppers are making more frequent trips to stores but purchasing smaller quantities, indicating a more strategic approach to holiday shopping [4] - There is a trend of consumers aggregating their spending around key shopping events to maximize deals [5] Promotional Insights - Retailers are observing a higher take rate on promotions compared to the previous year, suggesting that consumers are becoming more price-savvy [6]

Group 1 - Kohl's (KSS) is a notable stock in the Retail-Wholesale sector, currently outperforming its peers with a year-to-date return of 18.7% compared to the sector average of 5.9% [4] - The Zacks Rank for Kohl's is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with a 78.4% increase in the full-year earnings estimate over the past quarter [3][4] - Kohl's is part of the Retail - Regional Department Stores industry, which has an average year-to-date gain of 25.9%, suggesting that KSS is slightly underperforming within its specific industry [6] Group 2 - Compass Group PLC (CMPGY) is another Retail-Wholesale stock that has outperformed the sector, with a year-to-date increase of 6.1% [5] - The Retail - Restaurants industry, to which Compass Group belongs, has seen a decline of 5.9% year-to-date, indicating a challenging environment for this segment [7]

Group 1: Company Overview - Kohl's is one of 196 individual stocks in the Retail-Wholesale sector, currently ranked 8 in the Zacks Sector Rank [2] - Kohl's has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Kohl's has returned 20.4% year-to-date, outperforming the average gain of 8.1% in the Retail-Wholesale group [4] - The Zacks Consensus Estimate for Kohl's full-year earnings has increased by 78.4% over the past quarter, reflecting improved analyst sentiment [3] Group 3: Industry Comparison - Kohl's belongs to the Retail - Regional Department Stores industry, which is currently ranked 3 in the Zacks Industry Rank, with an average gain of 26.7% year-to-date [5] - In contrast, TJX, another outperforming stock in the Retail-Wholesale sector, is part of the Retail - Discount Stores industry, which has gained 1.9% since the beginning of the year [6]

Core Insights - Comparable store sales for Kohl's are declining, indicating potential challenges in sales performance [1] - Despite the decline in sales, the composition of Kohl's balance sheet presents an interesting investment opportunity [1] Financial Performance - The stock price referenced was from the afternoon of October 2, 2025, suggesting a specific timeframe for the analysis [1] - The video discussing these insights was published on October 4, 2025, indicating the recency of the information [1]

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior, particularly in the context of equity analysis and research [1]. Group 1: Professional Background - The author has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1]. - The professional background includes advising on and implementing multi-asset strategies, with a strong emphasis on equities and derivatives [1]. Group 2: Investment Philosophy - The goal of sharing insights is to make investing accessible, inspiring, and empowering for fellow investors [1]. - The author encourages building confidence in long-term investing through shared knowledge and collaboration [1].

Core Insights - The previous investment stance on Kohl's Corporation (NYSE: KSS) was a sell rating due to concerns over weak core performance and rising credit risk, which has proven to be incorrect as KSS shows resilience [1] Investment Approach - The investment strategy focuses on long-term investments while also utilizing short-term shorts to identify alpha opportunities [1] - The approach is based on bottom-up analysis, examining the fundamental strengths and weaknesses of individual companies [1] - The investment horizon is medium to long-term, aiming to find companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - Kohl's reported Q2 fiscal 2025 adjusted EPS of 56 cents, exceeding the Zacks Consensus Estimate of 33 cents, but down from 59 cents in the prior year [2] - Total revenues for the quarter were $3,546 million, a 5% decline from $3,732 million in the previous year, yet above the consensus estimate of $3,476 million [3] - Comparable sales decreased by 4.2% year-over-year, slightly better than the expected decline of 5.6% [3] Financial Performance - Gross margin increased by 28 basis points to 39.9%, surpassing the anticipated increase of 20 basis points [4] - SG&A expenses fell by 4.1% to $1,199 million, but as a percentage of total revenues, they rose by 32 basis points to 33.8% [4] - Operating income rose to $279 million from $166 million in the previous year, with an operating income margin expansion of 343 basis points to 7.9% [5] Financial Health - At the end of the quarter, Kohl's had cash and cash equivalents of $174 million and shareholders' equity of $3,927 million [6] - Net cash provided by operating activities was $506 million for the six months ending August 2, 2025 [6] - The company declared a quarterly cash dividend of 12.50 cents per share, payable on September 24, 2025 [6] Future Outlook - For fiscal 2025, Kohl's anticipates a net sales decline of 5-6% and comparable sales to decrease by 4-5% [7] - The expected operating margin for fiscal 2025 is projected to be between 2.5% and 2.7% [7] - Full-year EPS is forecasted to be between 50 cents and 80 cents [7] Market Sentiment - Since the earnings release, there has been a flat trend in estimates revision, with a consensus estimate shift of 15.83% [8] - Kohl's holds a strong Growth Score of A and a similar score for momentum, along with a value score of A, placing it in the top 20% for value investors [9][10] - The company has a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [11] Industry Comparison - Kohl's is part of the Zacks Retail - Regional Department Stores industry, where Dillard's has seen an 11.6% gain over the past month [12] - Dillard's reported revenues of $1.51 billion for the last quarter, reflecting a year-over-year increase of 1.6% [12] - Dillard's is expected to post earnings of $6.48 per share for the current quarter, indicating a 16.2% decline from the previous year [13]