Key Points
Shortly after appearing on the retail investor forum, StockTwits, the stock doubled in value.
Goldman Sachs just raised its price target on KSS to $7.
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Out of the gate, shares of Kohl’s (NYSE: KSS) rocketed to $19.53 a share.
From here, it could test $20 a share, near-term.
All thanks to the explosive retail buy interest in the stock.
Shortly after appearing on the retail investor forum, StockTwits, the stock doubled in value. It’s now one of the most heavily traded stocks on the day, with volume up to 105.6 million, as compared to its daily average volume of about 8.85 million shares. It was also why the stock was halted earlier today.
Leading up to the rally, shares of KSS had a short interest of about 53 million shares, or about half of its 112 million share float. Such a high level of elevated short interest made it vulnerable to the previous rallies we’ve seen with heavily shorted stocks.
Fueling even more upside, analysts at Goldman Sachs had just raised its price target on KSS to $7 from $5, even though it still has a sell rating on the stock.
We also have to consider that retail sales are up again.
As noted by CNN, “Retail sales rose 0.6% in June from the prior month, the Commerce Department said Thursday, rebounding from the steep 0.9% decline in May. June’s number was much stronger than the 0.2% gain economists projected in a FactSet poll. Spending climbed across categories last month, including at car dealerships, which saw one of the biggest monthly increases. Those sales were up a robust 1.2% in June.”
That, in addition to the Goldman Sachs price upgrade and a massive short squeeze, could be enough to send KSS to nearly $20 again.
Plus, earnings haven’t been too shabby.
In its most recent quarter, Kohl’s EPS loss of 13 cents beat by nine cents. Revenue of $3.23 billion, down 4.4% year over year, beat by $170 million.
“Our first quarter performance was ahead of our expectations, and the actions we are taking are starting to make progress with early signs of a positive impact,” said CEO Michael Bender.
Also, “CFO Jill Timm reiterated full-year 2025 financial guidance: comparable sales down 4% to down 6%, operating margin of 2.2% to 2.6%, and diluted EPS between $0.10 and $0.60. She stated, “Given what we know today and the current actions we are taking to mitigate tariffs, we believe we can achieve our financial guidance for the year,” as noted by Seeking Alpha.
With a good deal of progress, KSS could make a return to $20 near term.
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