Kohl’s shares gain the most in ten weeks on Tuesday, fourth-quarter profit tops estimates, retailer forecasts annual earnings above market expectations

March 6, 2019 8:18 am

Shares of Kohl’s Corp registered their largest single-session gain in ten weeks on Tuesday after the retailer reported quarterly comparable sales and profit above Wall Street estimates.

Kohl’s also forecast full-year profit above market consensus, since the company has been focused on increasing sales by stocking new items at its traditional stores, by introducing improvements to its on-line store and by taking advantage of a number of partnerships such as those with millennial-focused brand Popsugar and Amazon.com.

Kohl’s shares closed higher for the fifth time in the past ten trading sessions in New York on Tuesday. It has also been the sharpest daily surge since December 26th. The stock went up 7.31% ($4.86) to $71.33, after touching an intraday high at $71.88, or a price level not seen since November 19th ($73.88).

Shares of Kohl’s Corporation have risen 7.52% so far in 2019 compared with an 11.28% gain for the benchmark index, S&P 500 (SPX).

In 2018, Kohl’s Corp’s stock went up 22.33%, thus, it outperformed the S&P 500, which registered a 6.24% loss.

Kohl’s said that sales at stores, which are open for at least 12 months, grew 1% year-on-year during the fourth quarter ended on February 2nd. The figure compares with a 0.3% sales growth expected by analysts.

Meanwhile, Kohl’s earnings per share, excluding special items, were reported at $2.24 during the fourth quarter, which again outstripped the median analyst forecast of $2.18 per share.

The department store chain also said it now expected earnings per share within the range of $5.80 to $6.15 during fiscal year 2019. In comparison, analysts on average had expected full-year earnings of $5.77 per share.

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Kohl’s Corporation’s stock price, have a median target of $75.00, with a high estimate of $100.00 and a low estimate of $53.00. The median estimate represents a 5.15% upside compared to the closing price of $71.33 on March 5th.

The same media also reported that 8 out of 19 surveyed investment analysts had rated Kohl’s Corporation’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Kohl’s Corporation (KSS) are presented as follows:

Central Pivot Point – $67.45
R1 – $70.19
R2 – $72.28
R3 – $75.02
R4 – $77.76

S1 – $65.36
S2 – $62.62
S3 – $60.53
S4 – $58.44

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