Kohl’s (NYSE:KSS) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Kohl’s (NYSE:KSS) from a hold rating to a strong-buy rating in a research report released on Wednesday,Zacks.com reports.

Several other brokerages also recently issued reports on KSS. Morgan Stanley reaffirmed an “underweight” rating and issued a $15.00 price objective on shares of Kohl’s in a research report on Monday, July 6th. UBS Group boosted their target price on shares of Kohl’s from $8.00 to $9.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Wall Street Zen downgraded shares of Kohl’s from a “buy” rating to a “hold” rating in a research note on Sunday, June 7th. Weiss Ratings raised shares of Kohl’s from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, August 12th. Finally, Bank of America dropped their price target on shares of Kohl’s from $15.00 to $14.00 and set an “underperform” rating on the stock in a research note on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, eight have given a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Kohl’s has an average rating of “Reduce” and an average target price of $16.17.

Kohl’s Trading Up 1.7%

Shares of KSS opened at $18.24 on Wednesday. Kohl’s has a 12 month low of $11.38 and a 12 month high of $25.22. The stock’s 50-day moving average is $18.24 and its two-hundred day moving average is $16.02. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.49 and a quick ratio of 0.31. The stock has a market cap of $2.07 billion, a PE ratio of 7.96 and a beta of 1.40.

Kohl’s (NYSE:KSS) last posted its earnings results on Wednesday, August 26th. The company reported $1.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.58 by $0.70. The business had revenue of $3.52 billion during the quarter, compared to analyst estimates of $3.32 billion. Kohl’s had a return on equity of 6.75% and a net margin of 1.75%.The company’s revenue for the quarter was down .9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.56 earnings per share. Kohl’s has set its FY 2026 guidance at 1.800-2.400 EPS. Equities analysts forecast that Kohl’s will post 1.26 earnings per share for the current fiscal year.

Kohl’s Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be paid a dividend of $0.125 per share. This represents a $0.50 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Wednesday, September 9th. Kohl’s’s dividend payout ratio (DPR) is 21.83%.

Insider Transactions at Kohl’s

In other Kohl’s news, EVP Jennifer J. Kent sold 22,942 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $20.00, for a total value of $458,840.00. Following the transaction, the executive vice president directly owned 234,452 shares of the company’s stock, valued at $4,689,040. This represents a 8.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.55% of the stock is owned by corporate insiders.

Institutional Trading of Kohl’s

Hedge funds have recently made changes to their positions in the stock. Fuller & Thaler Asset Management Inc. bought a new stake in shares of Kohl’s in the fourth quarter worth $49,796,000. California State Teachers Retirement System raised its holdings in Kohl’s by 1,591.8% in the second quarter. California State Teachers Retirement System now owns 2,232,773 shares of the company’s stock valued at $39,565,000 after acquiring an additional 2,100,798 shares in the last quarter. Wells Fargo & Company MN boosted its stake in Kohl’s by 118.0% during the 4th quarter. Wells Fargo & Company MN now owns 211,640 shares of the company’s stock valued at $4,320,000 after acquiring an additional 1,388,707 shares during the last quarter. Renaissance Technologies LLC bought a new position in Kohl’s during the 4th quarter valued at $26,343,000. Finally, Arrowstreet Capital Limited Partnership boosted its stake in Kohl’s by 107.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,479,061 shares of the company’s stock valued at $31,980,000 after acquiring an additional 1,286,710 shares during the last quarter. Institutional investors and hedge funds own 98.04% of the company’s stock.

Key Headlines Impacting Kohl’s

Here are the key news stories impacting Kohl’s this week:

• Positive Sentiment: Q2 earnings and guidance beat expectations: Kohl’s reported adjusted EPS of $1.28, well above estimates near $0.55–$0.58, while revenue of approximately $3.52 billion also exceeded forecasts. The company raised fiscal 2026 EPS guidance to $1.80–$2.40, versus consensus near $1.48, and provided revenue guidance above analysts’ expectations. KSS Q2 Earnings Beat Estimates on Margin Gains, Outlook Raised
• Positive Sentiment: Margins and liquidity improved: Gross-margin expansion, cost controls, inventory discipline and stronger liquidity supported profitability. Kohl’s also continues emphasizing proprietary brands and expense management, reinforcing the value case after the stock’s recent rebound. Kohl’s Q2 Earnings Beat Shifts Focus to Holiday Execution and Margins
• Neutral Sentiment: Valuation offers support, but expectations are rising: Kohl’s trades at a relatively low earnings multiple, and analysts see potential if sales stabilize. However, the 15.6% three-month rally increases the need for convincing holiday-season execution. Telsey Advisory Group raised its price target to $18 but retained a “market perform” rating. Kohl’s Stock Is Up 15.6% in 3 Months: Is the Rebound Sustainable?
• Negative Sentiment: Sales remain the key concern: Net and comparable sales declined 0.9%, extending Kohl’s revenue-reduction streak as budget-conscious consumers prioritize essentials over discretionary merchandise. Investors also questioned whether the earnings beat reflected the underlying business or temporary benefits. Kohl’s Sales Dip As Consumers Prioritize Essentials
• Negative Sentiment: Tariff refunds may overstate the improvement: Approximately $150 million of tariff refunds materially boosted the quarter and outlook. Analysts warn that, excluding this benefit, earnings and gross-margin progress was more limited, while heavier fall promotions could pressure margins. Elevated leverage and Kohl’s large store base remain additional risks.

About Kohl’s

Kohl’s Corporation, founded in 1962 by Maxwell Kohl and headquartered in Menomonee Falls, Wisconsin, is a leading American department store retailer. The company operates approximately 1,100 stores across 49 states, offering a combination of value-oriented pricing, private-label brands and national labels. Since its initial public offering in 1992, Kohl’s has focused on broadening its product assortment and enhancing the in-store and online shopping experience.

The retailer’s merchandise portfolio spans apparel, footwear, accessories, and beauty products for women, men and children, as well as home goods, kitchenware and seasonal décor.