Kohl's Dividend and Options Trading Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- 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.
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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: 17.220
Low
7.00
Averages
19.75
High
25.00
Current: 17.220
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.
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.
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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.
Continue Reading