The Buy for Kohls (KSS) this week is based on the most current relative pricing of its shares and market intelligence. The Buy recommendation for Kohls Corp (NYSE:KSS) is based on reasoning that considers a numerical calculation of risk/reward that is attractive, an analytical score that is near average, and a ranking in the company's industry group that is in the middle third-below average, and a ranking in its sector group that is in the top quarter. The company derives some benefit of being in an industry group that is ranked well above average in investment attractiveness; however, its sector is ranked below average in attractiveness which may equalize this to a degree. This represents no change from the previous week and is the same ranking KSS has had from Portfolio Grader for the last month.
KSS is a member of the 5 company Department Stores GICS industry group, which is part of the 149 company GICS Retail Trade sector. KSS has a market value of $11.3 billion which is in the top 25% of its industry group The current KSS score from Portfolio grader places it 3 among the 5 companies in this industry group.
Currently, Portfolio Grader ranks the Retail Trade sector number 13 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Department Stores industry group is ranked 6 among the 129 industry groups within the GICS sectors, placing it well above-average in terms of the Proprietary Quantitative Score scoring system.
Kohls has received above-average scores in 4 of the 8 fundamental areas analyzed by Portfolio Grader and average or below-average grades in 4 of the areas used in the ranking of company stocks.
KSS's operational scores provide mixed results with rankings for operating margin and earnings growth that are above average, while the score for sales growth is below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions that is much better than the industry average but rankings for earnings surprises and earnings momentum that worse than average. KSS's score for return on equity is decidedly better than its industry group average but its grade for cash flow is below-average. Kohls' fundamental scores give KSS a place in the bottom quartile of the industry group.
The Proprietary Quantitative Score is used by Portfolio Grader to view KSS's shares from the perspective of risk/reward. This exclusive scoring methodology considers the relative value of the company's shares based on the recent $66.82 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, KSS currently scores well above-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.