Wall Street's Optimistic Outlook on Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy KSS?
Source: Yahoo Finance
- Kohl's Sales Decline: Kohl's (KSS) has experienced disappointing same-store sales over the past two years, with a projected 1.2% decline in sales over the next 12 months, indicating poor consumer response to its product selection and store experience, which may further erode its market share.
- Insufficient Profitability: With an operating margin of only 3.3%, Kohl's falls short of the industry average, and the lower profit levels hinder its ability to respond to unexpected market developments, increasing investment risks.
- TETRA Technologies Performance Drop: TETRA Technologies (TTI) has seen a 5.3% annual decline in sales over the past decade, reflecting unfavorable market trends, and its revenue base of $630.9 million indicates subscale operations that struggle to compete with larger rivals.
- LSI Growth Potential: LSI (LYTS) has achieved an impressive 16.1% annual revenue growth over the past five years, with a 45% increase in earnings per share, showcasing its competitive edge and profitability, while its current stock price of $19.40 suggests a 57.3% upside potential.
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Analyst Views on KSS
Wall Street analysts forecast KSS stock price to rise
13 Analyst Rating
1 Buy
7 Hold
5 Sell
Moderate Sell
Current: 14.520
Low
7.00
Averages
19.58
High
25.00
Current: 14.520
Low
7.00
Averages
19.58
High
25.00
About KSS
Kohl's Corporation is an omnichannel retailer. The Company operates approximately 1,100 stores and a Website www.Kohls.com. The Company’s Kohl's stores and Website sell private and national brand apparel, footwear, accessories, beauty, and home products. The Company’s Kohl's stores generally carry a consistent merchandise assortment with some differences attributable to local preferences, store size, and Sephora at Kohl's shop-in-shops (Sephora shops). Its Website includes merchandise, which is available in the Company’s stores, as well as merchandise that is available only online. Its merchandise mix includes both national brands and private brands that are available only at Kohl's. Its private portfolio includes established brands such as Apt. 9, Croft & Barrow, Jumping Beans, SO, Sonoma Goods for Life, and Tek Gear, and nationally recognized brands such as LC Lauren Conrad, Nine West, and Simply Vera Vera Wang.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wall Street's Optimistic Outlook on Stocks
- Kohl's Sales Decline: Kohl's (KSS) has experienced disappointing same-store sales over the past two years, with a projected 1.2% decline in sales over the next 12 months, indicating poor consumer response to its product selection and store experience, which may further erode its market share.
- Insufficient Profitability: With an operating margin of only 3.3%, Kohl's falls short of the industry average, and the lower profit levels hinder its ability to respond to unexpected market developments, increasing investment risks.
- TETRA Technologies Performance Drop: TETRA Technologies (TTI) has seen a 5.3% annual decline in sales over the past decade, reflecting unfavorable market trends, and its revenue base of $630.9 million indicates subscale operations that struggle to compete with larger rivals.
- LSI Growth Potential: LSI (LYTS) has achieved an impressive 16.1% annual revenue growth over the past five years, with a 45% increase in earnings per share, showcasing its competitive edge and profitability, while its current stock price of $19.40 suggests a 57.3% upside potential.
See More
Uber Launches New Returns Feature for Uber Eats
- Returns Feature Innovation: Uber Eats launched a new returns feature on Friday, allowing customers to request returns via their phones, with couriers picking up items for return, marking a significant innovation in the on-demand delivery industry.
- Instant Refund Mechanism: Customers can receive instant refunds when couriers pick up returned items worth at least $20, aiming to enhance customer shopping experiences and reduce stress associated with the return process.
- Market Competitive Advantage: This service applies to multiple retailers, including Best Buy, Dick's Sporting Goods, and Petco, further strengthening Uber's competitive position in the delivery market, especially in addressing the growing demand for online returns.
- Strong Financial Performance: Uber reported $4.9 billion in delivery revenue for Q4 2025, a 30% year-over-year increase, demonstrating the company's success in expanding delivery services, with the new returns feature expected to further drive revenue growth.
See More
Uber Launches Retail Return Pickup Service
- Return Service Innovation: Uber has announced a retail return pickup service that allows customers to return items purchased from retailers like Best Buy, Dick's Sporting Goods, and Petco through the Uber Eats app, enhancing user experience and addressing the pain points of online shopping returns.
- Instant Refund Mechanism: The service enables customers to receive an instant refund when the courier picks up the item, applicable to products costing at least $20, thereby streamlining the return process and improving customer satisfaction.
- Market Demand Response: A survey indicated that one-third of online return customers find printing labels and finding packaging stressful, and Uber's new feature aims to address this widespread issue, further solidifying its competitive position in the delivery market.
- Financial Performance Boost: Uber's delivery revenue reached $4.9 billion in Q4 of fiscal 2025, marking a 30% year-over-year increase, and the launch of this return service is expected to further drive revenue growth and enhance user loyalty.
See More
GLP-1 Drugs Drive Growth in U.S. Apparel Spending
- Surge in Apparel Demand: Approximately 80% of GLP-1 users anticipate needing new clothing due to size changes, with a Circana survey revealing that 55% of active users have already purchased new items, indicating a fresh wave of consumer spending in the apparel market.
- Significant Market Potential: Bernstein estimates that GLP-1 users could purchase between 150 million and 700 million apparel items due to weight loss, translating to an additional $13 billion in annual spending in the U.S. apparel sector, highlighting robust market demand.
- Brands Adapting to Change: Retailers like Stitch Fix have launched targeted marketing campaigns for weight loss users, with client mentions of weight loss requests tripling over the past two years, demonstrating brands' proactive adaptation to this emerging trend.
- Shift in Consumer Behavior: An increasing number of consumers are opting for more affordable clothing during their weight loss journey, with Destination XL's CEO noting that about 25% of their customers are using GLP-1 drugs, leading to a preference for cost-effective options.
See More
AI Virtual Try-On Technology Boosts Retail
- Return Rate Challenge: The National Retail Federation estimates that by 2025, 15.8% of retail sales will be returned, with online sales seeing a staggering 19.3% return rate, significantly impacting retailers' profitability and driving them to seek AI solutions to mitigate returns.
- Virtual Try-On Technology: AI startup Catches has launched a virtual try-on platform that allows users to create a 'digital twin' for clothing trials, utilizing physics to simulate fabric texture, which is expected to significantly enhance online sales conversion rates for luxury brands and drive profit growth.
- Market Response: Retailers like Zara and ASOS have begun implementing virtual try-on tools and return fee policies, with Zara successfully protecting its gross margin through these measures, while ASOS reported a 160 basis point reduction in return rates, showcasing the potential of AI technology in improving profitability.
- Industry Outlook: As AI technology continues to advance, it is expected to drive transformation across the retail sector, with Catches projecting a 10% increase in conversion rates and a 20 to 30 times return on investment for brand partners, indicating the growing significance of AI in retail.
See More
Kohl's Shares Decline as Earnings Miss Expectations
- Earnings Report Insight: Kohl's reported adjusted earnings of $1.07 per share for Q4 2025, surpassing the market expectation of $0.86, yet net sales of $4.97 billion fell short of the $5.02 billion forecast, indicating a struggle to balance profitability with declining sales.
- Ongoing Sales Decline: The company's year-over-year sales dropped by 3.9%, with comparable sales down 2.8%, and guidance for 2026 suggests a further 2% decline in net sales, marking the fifth consecutive year of decreasing same-store sales, highlighting the challenges in its turnaround efforts.
- Store Strategy Adjustment: Management has ruled out further store closures in the near term, with CEO Michael Bender emphasizing a focus on optimizing existing store productivity, indicating a strategy aimed at enhancing efficiency to counteract sales challenges.
- E-commerce and Physical Store Synergy: Kohl's e-commerce platform accounted for 35% of Q4 sales, and over 90% of its 1,150 physical locations remain profitable, underscoring the critical role of brick-and-mortar stores in supporting its online business, with future plans likely involving improved inventory management and value positioning to drive transformation.
See More
Wall Street's Optimistic Outlook on Stocks
- Kohl's Sales Decline: Kohl's (KSS) has experienced disappointing same-store sales over the past two years, with a projected 1.2% decline in sales over the next 12 months, indicating poor consumer response to its product selection and store experience, which may further erode its market share.
- Insufficient Profitability: With an operating margin of only 3.3%, Kohl's falls short of the industry average, and the lower profit levels hinder its ability to respond to unexpected market developments, increasing investment risks.
- TETRA Technologies Performance Drop: TETRA Technologies (TTI) has seen a 5.3% annual decline in sales over the past decade, reflecting unfavorable market trends, and its revenue base of $630.9 million indicates subscale operations that struggle to compete with larger rivals.
- LSI Growth Potential: LSI (LYTS) has achieved an impressive 16.1% annual revenue growth over the past five years, with a 45% increase in earnings per share, showcasing its competitive edge and profitability, while its current stock price of $19.40 suggests a 57.3% upside potential.
See More
Uber Launches New Returns Feature for Uber Eats
- Returns Feature Innovation: Uber Eats launched a new returns feature on Friday, allowing customers to request returns via their phones, with couriers picking up items for return, marking a significant innovation in the on-demand delivery industry.
- Instant Refund Mechanism: Customers can receive instant refunds when couriers pick up returned items worth at least $20, aiming to enhance customer shopping experiences and reduce stress associated with the return process.
- Market Competitive Advantage: This service applies to multiple retailers, including Best Buy, Dick's Sporting Goods, and Petco, further strengthening Uber's competitive position in the delivery market, especially in addressing the growing demand for online returns.
- Strong Financial Performance: Uber reported $4.9 billion in delivery revenue for Q4 2025, a 30% year-over-year increase, demonstrating the company's success in expanding delivery services, with the new returns feature expected to further drive revenue growth.
See More
Uber Launches Retail Return Pickup Service
- Return Service Innovation: Uber has announced a retail return pickup service that allows customers to return items purchased from retailers like Best Buy, Dick's Sporting Goods, and Petco through the Uber Eats app, enhancing user experience and addressing the pain points of online shopping returns.
- Instant Refund Mechanism: The service enables customers to receive an instant refund when the courier picks up the item, applicable to products costing at least $20, thereby streamlining the return process and improving customer satisfaction.
- Market Demand Response: A survey indicated that one-third of online return customers find printing labels and finding packaging stressful, and Uber's new feature aims to address this widespread issue, further solidifying its competitive position in the delivery market.
- Financial Performance Boost: Uber's delivery revenue reached $4.9 billion in Q4 of fiscal 2025, marking a 30% year-over-year increase, and the launch of this return service is expected to further drive revenue growth and enhance user loyalty.
See More
GLP-1 Drugs Drive Growth in U.S. Apparel Spending
- Surge in Apparel Demand: Approximately 80% of GLP-1 users anticipate needing new clothing due to size changes, with a Circana survey revealing that 55% of active users have already purchased new items, indicating a fresh wave of consumer spending in the apparel market.
- Significant Market Potential: Bernstein estimates that GLP-1 users could purchase between 150 million and 700 million apparel items due to weight loss, translating to an additional $13 billion in annual spending in the U.S. apparel sector, highlighting robust market demand.
- Brands Adapting to Change: Retailers like Stitch Fix have launched targeted marketing campaigns for weight loss users, with client mentions of weight loss requests tripling over the past two years, demonstrating brands' proactive adaptation to this emerging trend.
- Shift in Consumer Behavior: An increasing number of consumers are opting for more affordable clothing during their weight loss journey, with Destination XL's CEO noting that about 25% of their customers are using GLP-1 drugs, leading to a preference for cost-effective options.
See More
AI Virtual Try-On Technology Boosts Retail
- Return Rate Challenge: The National Retail Federation estimates that by 2025, 15.8% of retail sales will be returned, with online sales seeing a staggering 19.3% return rate, significantly impacting retailers' profitability and driving them to seek AI solutions to mitigate returns.
- Virtual Try-On Technology: AI startup Catches has launched a virtual try-on platform that allows users to create a 'digital twin' for clothing trials, utilizing physics to simulate fabric texture, which is expected to significantly enhance online sales conversion rates for luxury brands and drive profit growth.
- Market Response: Retailers like Zara and ASOS have begun implementing virtual try-on tools and return fee policies, with Zara successfully protecting its gross margin through these measures, while ASOS reported a 160 basis point reduction in return rates, showcasing the potential of AI technology in improving profitability.
- Industry Outlook: As AI technology continues to advance, it is expected to drive transformation across the retail sector, with Catches projecting a 10% increase in conversion rates and a 20 to 30 times return on investment for brand partners, indicating the growing significance of AI in retail.
See More
Kohl's Shares Decline as Earnings Miss Expectations
- Earnings Report Insight: Kohl's reported adjusted earnings of $1.07 per share for Q4 2025, surpassing the market expectation of $0.86, yet net sales of $4.97 billion fell short of the $5.02 billion forecast, indicating a struggle to balance profitability with declining sales.
- Ongoing Sales Decline: The company's year-over-year sales dropped by 3.9%, with comparable sales down 2.8%, and guidance for 2026 suggests a further 2% decline in net sales, marking the fifth consecutive year of decreasing same-store sales, highlighting the challenges in its turnaround efforts.
- Store Strategy Adjustment: Management has ruled out further store closures in the near term, with CEO Michael Bender emphasizing a focus on optimizing existing store productivity, indicating a strategy aimed at enhancing efficiency to counteract sales challenges.
- E-commerce and Physical Store Synergy: Kohl's e-commerce platform accounted for 35% of Q4 sales, and over 90% of its 1,150 physical locations remain profitable, underscoring the critical role of brick-and-mortar stores in supporting its online business, with future plans likely involving improved inventory management and value positioning to drive transformation.
See More
