Kohl’s Corporation (NYSE:KSS) — On Monday, this large-cap department store and e-commerce retailer announced that it would hire over 69,000 workers for the 2016 holiday season.
The company operates 1,165 specialty department stores in 49 states. The stores feature moderately priced merchandise, including apparel, shoes, accessories, and home products.
Fiscal Year 2017 (Jan) earnings are estimated at $3.95, up from $3.46 in FY 2016.
On August 11, KSS stock surprised analysts by reporting second-quarter earnings of $1.22 vs analysts’ forecasts of $1.03, up from $1.07 a year ago. Thus Standard & Poor’s forecasts that Kohl’s actions to drive traffic will improve sales, including their new beauty assortment in 214 stores.
There is also a new customer loyalty plan started in Texas and California that will be rolled out nationally. Although S&P rates KSS stock a three-star hold, the FQ2 results speak for themselves, while analysts see challenges from JC Penney Company Inc (NYSE:JCP) and Amazon.com, Inc. (NASDAQ:AMZN). At $43, the dividend/share of $2 provides a yield of 4.7%.
Kohl’s’ surprising Q2 results created a high-volume pop in the shares that opened a break-away gap from $39.50 to $42.31 and a break of its 200-day moving average. The run-up led to a high close at about $47. Since then, the stock has retraced a part of the jump and found support near the top of the gap, which is also the support line and 50-day moving average at $42.21.
MACD is turning up, providing support for a long-term turnaround. Buy KSS stock at $43 for a 90-day trade to $50 and a return target of 16%.
