Kohl's (KSS) Demonstrates Rapid Growth Yet Remains an Affordable Investment
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like "buy low and sell high," which can be risky if stocks lose momentum after high valuations.
Kohl's Stock Performance: Kohl's (KSS) has shown significant price momentum, with a 45.6% increase over four weeks and a 31.1% gain over 12 weeks, making it a strong candidate for momentum investing.
Valuation and Earnings Estimates: KSS is trading at a low Price-to-Sales ratio of 0.16, indicating it is attractively priced, and has a favorable Momentum Score of A, supported by positive earnings estimate revisions.
Investment Tools and Recommendations: Zacks offers various stock-picking strategies and tools, including the Research Wizard for backtesting, and highlights upcoming top stock picks for 2026, emphasizing the importance of historical performance in investment strategies.
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Oversold Stocks in Consumer Discretionary Sector Present Buying Opportunities
- Oversold Stock Overview: Kohls Corp's relative strength index (RSI) stands at 29.6, indicating a 17% decline over the past month and a 52-week low of $6.04, suggesting it is undervalued and may attract investor interest.
- Analyst Rating: Jefferies analyst Blake Anderson assigned a Hold rating to Kohl's on January 14, and despite the stock's decline, the rating may provide a relatively stable investment signal for investors.
- Market Performance: Kohls shares fell 3.2% to close at $17.22 on Wednesday, and with an 86.20 momentum score and a 96.75 value score, it indicates potential rebound opportunities in the market.
- Industry Dynamics: As consumer spending gradually recovers, oversold stocks like Kohls may become focal points for investors to reassess, especially in the context of economic recovery, which could yield higher returns.

Kohl's Dividend and Options Trading Analysis
- Dividend Yield Analysis: Kohl's Corp. has a recent dividend yield of 2.9%, based on historical profitability trends, indicating that the sustainability of future dividends requires careful assessment to avoid misleading investors.
- Historical Volatility Assessment: With a trailing twelve-month volatility of 95%, Kohl's high volatility suggests that investors should consider potential risks when trading options, particularly with covered calls at the $27.50 strike, which may forfeit upside beyond that price.
- Options Market Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components was 858,771 contracts, while call volume reached 1.86M, resulting in a put:call ratio of 0.46, indicating a strong preference for calls, reflecting investor optimism about future price increases.
- Options Trading Strategy Advice: By combining Kohl's historical trading data with current options market dynamics, investors should weigh potential rewards against risks when considering selling covered calls at the $27.50 strike to make more informed investment decisions.








