The 20-20 Volatility Group: Five Consumer Stocks with Significant Short Interest and Low Price-to-Earnings Ratios
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
Value Trap or Opportunity: Stocks with high short interest and low price-to-earnings ratios may present risks as value traps or opportunities for significant short squeezes, especially if catalysts arise.
Stock Examples: Notable stocks include Kohl's (KSS) with a P/E of 16.7 and short interest of 24.8%, Jack in the Box (JACK) with a P/E of 5.3 and short interest of 25.8%, and Caleres (CAL) with a P/E of 2.1 and short interest of 22.2%.
Analyst Ratings: The Wall Street consensus ratings for these stocks vary, with Kohl's and Grocery Outlet rated as Hold, Jack in the Box as Strong Sell, and Caleres as Buy.
Future Outlook: Companies like Grocery Outlet and Kohl's are focusing on strategic initiatives and guidance for future earnings, indicating potential for growth despite current market challenges.
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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: 16.900
Low
7.00
Averages
19.75
High
25.00
Current: 16.900
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.
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- 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.
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