What Happened?
Shares of department store chain Kohl’s (NYSE: KSS) jumped 6.8% in the afternoon session after investment analysts at Gordon Haskett raised their rating on the stock to 'hold' from 'reduce'. Investment firm Gordon Haskett revised its outlook on the stock on Tuesday, prompting positive market sentiment. This upgrade is notable given that Kohl's holds a consensus "Reduce" recommendation from the fifteen analysts covering the firm. Prior to this change, seven analysts had a "sell" rating on the stock, while eight recommended a "hold." The shift by Gordon Haskett may suggest an improved perspective on the retailer's prospects. Adding to the news, the company also recently declared a regular quarterly dividend of $0.125 per share.
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What Is The Market Telling Us
Kohl’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 5.7% on the news that a tame inflation report boosted investor hopes for an interest rate cut from the Federal Reserve. The latest Consumer Price Index data showed the annual inflation rate held steady at 2.7%, reassuring investors who had feared that tariffs could lead to a spike in consumer prices. This milder-than-expected reading gives the Federal Reserve more flexibility to consider lowering interest rates, possibly as soon as next month. A potential rate cut could reduce borrowing costs for consumers and businesses, stimulating more spending and providing a significant boost for the retail industry. Adding to the optimism, reports of a 90-day tariff truce with China further eased concerns about future price pressures.
Kohl's is down 1.6% since the beginning of the year, and at $13.81 per share, it is trading 34.6% below its 52-week high of $21.10 from September 2024. Investors who bought $1,000 worth of Kohl’s shares 5 years ago would now be looking at an investment worth $606.30.
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