Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Baird sees a path to recovery at Kohl's Corporation (NYSE:KSS) in the form of recent Under Armour Inc (NYSE:UA) (NYSE:UAA) launch and tight cost controls amid challenging retail environment for department store operators.
Print Review
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Kohl’s reported a fourth-quarter EPS beat ($1.44 vs. $1.33 consensus), driven by better-than-expected margins due to lower markdowns and improved fulfillment productivity. Comps of -2.2 percent were essentially in line with reported November to December results (-2.1 percent) and consensus (-2.1 percent).
“Big picture, it was a disappointing holiday season for Kohl’s and the broader sector (Q4 transactions/store -6 percent, ATV +3.8 percent on mix, reduced discounting) but final results topped reduced expectations,” analyst Mark Altschwager wrote in a note.
Rating, Justification
However, Altschwager maintains his Neutral rating on the stock, saying that F 2017 targets won’t be easily achievable amid a very challenging department store backdrop.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
Management acknowledged that traffic may need to improve to “-3 percent” from “-5–6 percent” to hit the upper end of comp guidance (flat to down 1 percent), suggesting some risk to estimates.
Related Link: Retailers' Earnings On Parade: How Do Nordstrom, JCPenney Stack Up?
“Achieving even flat comps remains an uphill climb given structural traffic declines (~MSD percent), competitive threats (Amazon, off-price), and consumer spending shifts away from apparel,” Altschwager continued.
These pressures are largely reflected in the company’s initial F2017 outlook, which calls for EPS of $3.50–$3.80 (bracketing prior consensus). The analyst cut his F2017 EPS estimate by 2 percent to $3.62, near the midpoint of guidance.
As of now, the risk/reward for the shares appears to be balanced. On one hand, investors may embrace higher dividend yield (now >5 percent), but would be concerned with overhangs such as traffic headwinds, Amazon.com, Inc. (NASDAQ:AMZN) and border tax uncertainty.
At last check, shares of Kohl’s rose 3.54 percent to $42.36. The analyst has a price target of $44.
Image Credit: By MB298 (Own work) [CC BY-SA 4.0], via Wikimedia Commons
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.