Kohl's (KSS) Demonstrates Rapid Growth Yet Remains an Affordable Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2025
0mins
Should l Buy KSS?
Source: NASDAQ.COM
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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Analyst Views on KSS
Wall Street analysts forecast KSS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KSS is 19.75 USD with a low forecast of 7.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
7 Hold
5 Sell
Moderate Sell
Current: 17.720
Low
7.00
Averages
19.75
High
25.00
Current: 17.720
Low
7.00
Averages
19.75
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.
Market Analysis of Heavily Shorted Stocks
- Attraction of Shorted Stocks: Investors maintain high short interest in overvalued stocks, indicating significant perceived risks such as poor earnings or industry headwinds that could drive prices down, impacting market sentiment and investment strategies.
- Bear vs. Bull Dynamics: Short sellers meticulously identify companies they view as ticking time bombs, while retail traders see high short interest as a potential springboard for price rebounds, where rising stock prices can trigger short squeezes, affecting market liquidity.
- Understanding Short Squeeze Mechanics: A short squeeze creates a volatile feedback loop initiated by unexpected price increases, forcing short sellers to buy back shares to cover positions, which spikes demand and further elevates prices, trapping more short sellers and potentially leading to outsized returns.
- Current Market Landscape: As of February 2, the most shorted stocks include those with market caps above $2 billion and free floats exceeding 5 million shares, ranked by short interest, highlighting the market's focus on these stocks and their associated risks.
See More
Rise of Retail Investors and Tesla's Dominance
- Rise of Retail Investors: Five years ago, the meme stock craze initiated by retail investors, particularly through the short squeeze of GameStop, became a pivotal event in modern market history, reshaping trading dynamics.
- Tesla's Market Position: In 2023, Tesla surpassed the SPDR S&P 500 ETF to become the most purchased stock by retail investors, reflecting its skyrocketing popularity among small-scale investors, having not even made the top 20 four years prior.
- Performance Comparison: Tesla's shares more than doubled in 2023, while the Nasdaq Composite only gained 43%, highlighting Tesla's robust recovery and the intense market focus on its performance.
- Influence of Retail Investors: Blackrock estimates that retail investors now account for nearly 20% of average daily flows, a significant increase from low single-digit percentages before the pandemic, underscoring their growing impact on the market.
See More
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.
See More
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.
See More
Retail Investor Influence Proves Resilient and Expanding
- Increased Retail Participation: According to BlackRock, individual investor participation in U.S. equities has risen to nearly 20% of daily trading volume, a significant increase from low single digits pre-pandemic, highlighting the growing importance of retail investors in the market.
- Record Inflows: JPMorgan reports that retail inflows surged nearly 60% in 2025 compared to the previous year, exceeding the previous peak set in 2021 by 17%, indicating sustained activity and influence of retail investors in the market.
- Changing Market Dynamics: The collective actions of retail investors have prompted hedge funds to adjust strategies by reducing short positions and investing in tools that track retail sentiment, reflecting a widespread recognition of retail's market impact.
- Wealth Transfer Trend: An estimated $120 trillion will be inherited by millennials and Gen Z over the next 20 years, suggesting that retail participation could expand significantly, driving profound changes in market structure.
See More
Kohl's Corp. Stock Rises 43.2% Amid Geopolitical Risks
- Stock Performance: Kohl's Corp. has seen a 43.2% increase in stock price over the past year, despite a 5.7% decline in the last week, indicating investor confidence in its long-term growth potential amidst rising geopolitical risks.
- Industry Context: President Trump's proposal to acquire Greenland has led to a broader decline in U.S. equity markets, with several EU countries deploying military support, potentially escalating tensions and affecting market sentiment and investment decisions.
- Investment Strategy: Momentum investing is viewed as an effective strategy to navigate market volatility, particularly when value or growth investing fails to yield expected returns, leading investors to favor momentum stocks in the current uncertain economic environment.
- Market Outlook: Despite facing short-term price pullbacks, momentum stocks like Kohl's, Albemarle, and Alcoa are seen as potential investment opportunities, expected to continue attracting investors seeking stable returns.
See More
Market Analysis of Heavily Shorted Stocks
- Attraction of Shorted Stocks: Investors maintain high short interest in overvalued stocks, indicating significant perceived risks such as poor earnings or industry headwinds that could drive prices down, impacting market sentiment and investment strategies.
- Bear vs. Bull Dynamics: Short sellers meticulously identify companies they view as ticking time bombs, while retail traders see high short interest as a potential springboard for price rebounds, where rising stock prices can trigger short squeezes, affecting market liquidity.
- Understanding Short Squeeze Mechanics: A short squeeze creates a volatile feedback loop initiated by unexpected price increases, forcing short sellers to buy back shares to cover positions, which spikes demand and further elevates prices, trapping more short sellers and potentially leading to outsized returns.
- Current Market Landscape: As of February 2, the most shorted stocks include those with market caps above $2 billion and free floats exceeding 5 million shares, ranked by short interest, highlighting the market's focus on these stocks and their associated risks.
See More
Rise of Retail Investors and Tesla's Dominance
- Rise of Retail Investors: Five years ago, the meme stock craze initiated by retail investors, particularly through the short squeeze of GameStop, became a pivotal event in modern market history, reshaping trading dynamics.
- Tesla's Market Position: In 2023, Tesla surpassed the SPDR S&P 500 ETF to become the most purchased stock by retail investors, reflecting its skyrocketing popularity among small-scale investors, having not even made the top 20 four years prior.
- Performance Comparison: Tesla's shares more than doubled in 2023, while the Nasdaq Composite only gained 43%, highlighting Tesla's robust recovery and the intense market focus on its performance.
- Influence of Retail Investors: Blackrock estimates that retail investors now account for nearly 20% of average daily flows, a significant increase from low single-digit percentages before the pandemic, underscoring their growing impact on the market.
See More
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.
See More
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.
See More
Retail Investor Influence Proves Resilient and Expanding
- Increased Retail Participation: According to BlackRock, individual investor participation in U.S. equities has risen to nearly 20% of daily trading volume, a significant increase from low single digits pre-pandemic, highlighting the growing importance of retail investors in the market.
- Record Inflows: JPMorgan reports that retail inflows surged nearly 60% in 2025 compared to the previous year, exceeding the previous peak set in 2021 by 17%, indicating sustained activity and influence of retail investors in the market.
- Changing Market Dynamics: The collective actions of retail investors have prompted hedge funds to adjust strategies by reducing short positions and investing in tools that track retail sentiment, reflecting a widespread recognition of retail's market impact.
- Wealth Transfer Trend: An estimated $120 trillion will be inherited by millennials and Gen Z over the next 20 years, suggesting that retail participation could expand significantly, driving profound changes in market structure.
See More
Kohl's Corp. Stock Rises 43.2% Amid Geopolitical Risks
- Stock Performance: Kohl's Corp. has seen a 43.2% increase in stock price over the past year, despite a 5.7% decline in the last week, indicating investor confidence in its long-term growth potential amidst rising geopolitical risks.
- Industry Context: President Trump's proposal to acquire Greenland has led to a broader decline in U.S. equity markets, with several EU countries deploying military support, potentially escalating tensions and affecting market sentiment and investment decisions.
- Investment Strategy: Momentum investing is viewed as an effective strategy to navigate market volatility, particularly when value or growth investing fails to yield expected returns, leading investors to favor momentum stocks in the current uncertain economic environment.
- Market Outlook: Despite facing short-term price pullbacks, momentum stocks like Kohl's, Albemarle, and Alcoa are seen as potential investment opportunities, expected to continue attracting investors seeking stable returns.
See More
