Kohl's Stock (NYSE:KSS), Trade Ideas

Kohl's

Kohl's operates about 1,174 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers. Kohl's also operates a large digital sales business. Women's apparel is Kohl's largest category, having generated 26% of its 2023 sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.

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During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a  high dividend payout. 

Wall Street&#39;s Most Accurate Analysts Say Hold These 3 Consumer Stocks With Over 4% Dividend Yields

LEVI

With its latest quarter results, Levi Strauss &amp; Co (NYSE: LEVI) showed long gone are the days the jeans retailer depended on wholesalers like Macy’s Inc (NYSE: M) and Kohl’s Corporation (NYSE: 

Levi Proves Once Again That Denim Does Not Go Out Of Style

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U.S. stocks were higher, with the Dow Jones index gaining around 300 points on Wednesday.

Cintas Reports Upbeat Earnings, Joins PaySign, Noah Holdings And Other Big Stocks Moving Higher On Wednesday

Kohl's Corp

KINGFISH HOLDING CORP by Kingfish Holding Corporation

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<p><strong>Kohl's's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) short percent of float has risen 6.92% since its last report. The company recently reported that it has <strong>29.91 million shares sold short</strong>, which is 37.7% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 5.35 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Kohl's Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1713533421_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Kohl's has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Kohl's's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kohl's's peer group average for short interest as a percentage of float is 7.44%, which means the company has <strong>more</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Short Ideas

(KSS) - Analyzing Kohl's's Short Interest

<p>During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a <a href="https://www.benzinga.com/yield-investments"><em> high dividend payout. </em></a></p>
<p>Benzinga readers can review the latest analyst takes on&nbsp;their favorite stocks&nbsp;by visiting our&nbsp;<a href="https://www.benzinga.com/analyst-stock-ratings">Analyst Stock Ratings&nbsp;</a>page. Traders can sort through Benzinga&#39;s extensive database of analyst ratings, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/09/28888638/exclusive-study-finds-benzinga-analyst-ratings-data-yields-market-beating-strategie"><em> by analyst accuracy </em></a>.</p>
<p>Below are the ratings of the most accurate analysts for three high-yielding stocks in the consumer discretionary sector.</p>
<h3><strong>Kohl&#39;s Corporation</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>)</h3>
<ul>
<li><strong>Dividend Yield:</strong> 7.87%</li>
<li><strong>Citigroup</strong> analyst Paul Lejuez maintained a Neutral rating and cut the price target from $27 to $24 on March 13, 2024. This analyst has an accuracy rate of 66%.</li>
<li><strong>JP Morgan</strong> analyst Matthew Boss maintained a Neutral rating and raised the price target from $20 to $21 on March 13, 2024. This analyst has an accuracy rate of 67%.</li>
<li><strong>Recent News:</strong> On March 12, Kohl&rsquo;s reported a fourth-quarter FY23 sales decline of 1.1% year-on-year to $5.71 billion, beating the analyst consensus estimate of $5.70 billion.</li>
</ul>
<h3><strong>The Wendy&#39;s Company </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wen#NASDAQ">WEN</a>)</h3>
<ul>
<li><strong>Dividend Yield:</strong> 5.36%</li>
<li><strong>JP Morgan</strong> analyst John Ivankoe downgraded the stock from Overweight to Neutral and cut the price target from $22 to $19 on Feb. 21, 2024. This analyst has an accuracy rate of 70%.</li>
<li><strong>BMO Capital</strong> analyst Andrew Strelzik maintained a Market Perform rating and lowered the price target from $22 to $20 on Feb. 16, 2024. This analyst has an accuracy rate of 84%.</li>
<li><strong>Recent News:</strong> The Wendy&#39;s Company said it will release its first quarter 2024 results before the opening bell on May 2.</li>
</ul>
<h3><strong>Dine Brands Global, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/din#NYSE">DIN</a>)</h3>
<ul>
<li><strong>Dividend Yield:</strong> 4.65%</li>
<li><strong>Wedbush</strong> analyst Nick Setyan maintained a Neutral rating and raised the price target from $46 to $48 on Feb. 29, 2024. This analyst has an accuracy rate of 84%.</li>
<li><strong>Piper Sandler</strong> analyst Brian Mullan maintained a Neutral rating and slashed the price target from $59 to $49 on Nov. 2, 2023. This analyst has an accuracy rate of 86%.</li>
<li><strong>Recent News:</strong> On Feb. 28, Dine Brands Global posted better-than-expected fourth-quarter earnings.</li>
</ul>
<p>&nbsp;</p>
<p>Read More: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38142611/bitcoin-surpasses-72-000-lido-dao-emerges-as-top-gainer"><em> Bitcoin Surpasses $72,000; Lido DAO Emerges As Top Gainer </em></a></p>
<p>&nbsp;</p>


Wall Street's Most Accurate Analysts Say Hold These 3 Consumer Stocks With Over 4% Dividend Yields

<p>With its latest quarter results, Levi Strauss &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/levi#NYSE">LEVI</a>) showed long gone are the days the jeans retailer depended on&nbsp;wholesalers like&nbsp;Macy&rsquo;s Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/m#NYSE">M</a>)&nbsp;and&nbsp;Kohl&rsquo;s Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>)&nbsp;to drive its business. Now, almost half of Levi&rsquo;s sales are done through its own website and stores.&nbsp;</p>
<p>Fiscal first quarter results</p>
<p>For the quarter ended on February 25th, direct-to-consumer sales accounted for a record 48% of total sales, rising from last year&rsquo;s comparable quarter when they made 42%.&nbsp;</p>
<p>However, total sales did fall about 8% YoY to&nbsp;$1.56 billion&nbsp;due to shift away from wholesalers, but still topping LSEG&rsquo;s estimate of $1.55 billion.</p>
<p>While Levi made an income during last year&rsquo;s comparable quarter, this time, it swung to a net loss of $10.6 million, or 3 cents per share. But adjusted earnings that exclude one-time restructuring costs amounted to 26 cents per share, also surpassing LSEG&rsquo;s estimate of 21 cents.</p>
<p>A lifted full-year guidance despite an unfavorable macroeconomic backdrop</p>
<p>Despite the macroeconomic uncertainty and discretionary spending slowdown, Levi&rsquo;s reaffirmed its guidance for full-year sales growth in the range between 1% and 3%. Moreover, it lifted its profit guidance as it now expects&nbsp;adjusted earnings per share in the range between $1.17 and $1.27.&nbsp;Back in January, Levi&rsquo;s announced it plans to save about $100 million during the fiscal year by trimming its workforce by 10% to 15%.</p>
<p>Moving the focus away from wholesalers to DTC channels&nbsp;paid off.</p>
<p>Levi&rsquo;s strategic decision to focus on its own digital and physical sales channels boosted its profits and allowed the company to get to know its consumers better, as well as their shopping patterns. One might also wonder how will Levi&rsquo;s success weigh on wholesale partners and retailers like Macy&rsquo;s and Kohl&rsquo;s that are struggling with their own existential crisis. But Levi took more control of its own destiny as department stores like Macy&rsquo;s continue to shrink and fear for their survival. In February, Macy&rsquo;s announced the closure of 150 stores. Although such closures would undoubtedly impact Levi,&nbsp;CEO Michelle Gass&nbsp;expects the DTC sales to offset this loss.</p>
<p>Denim does not go out of style.</p>
<p>Fortunately for Levi, denim is still in style, even at times when consumer spending for discretionary items like clothing has been under pressure. During the quarter, sales of denim skirts, dresses and tops rose 19% in its DTC channel, while also performing well in wholesale. It also owes a special thank you to the culture shaper queen, Beyonc&eacute;, for naming a song after the brand, allowing Levi&rsquo;s to still enjoy being part of the conversation.&nbsp;</p>
<p><em>DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.</em></p>
<p class="contributor-disclaimer"><em>This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.</em></p>


<p><strong>Kohl's's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) short percent of float has risen 25.17% since its last report. The company recently reported that it has <strong>34.76 million shares sold short</strong>, which is 35.26% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 4.85 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Kohl's Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712154620_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Kohl's has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Kohl's's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Kohl's's peer group average for short interest as a percentage of float is 7.31%, which means the company has <strong>more</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


WIIM

Kohl's shares are trading lower. The stock may be down in sympathy with PVH, which issued weak Q1 guidance.

<p>U.S. stocks were higher, with the Dow Jones index gaining around 300 points on Wednesday.</p>
<p>Shares of <strong>Cintas Corporation</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ctas#NASDAQ">CTAS</a>) rose sharply during Wednesday&rsquo;s session after the company reported better-than-expected third-quarter financial results and <a href="https://www.benzinga.com/quote/CTAS/earnings">raised FY24 guidance</a>.</p>
<p>Cintas posted GAAP earnings of $3.84 per share, beating market estimates of $3.59 per share. The company&rsquo;s quarterly sales came in at $2.406 billion, versus expectations of $2.386 billion, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.</p>
<p>Cintas shares climbed 9.7% to $694.62 on Wednesday.</p>
<p>Here are some other big stocks recording gains in today&rsquo;s session.</p>
<ul>
<li><strong>PaySign, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pays#NASDAQ">PAYS</a>) shares jumped 28.2% to $4.3299 after the company announced better-than-expected fourth-quarter results.</li>
<li><strong>Noah Holdings Limited</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/noah#NYSE">NOAH</a>) climbed 17.5% to $11.89 after the company reported fourth quarter financial results.</li>
<li><strong>NuScale Power Corporation</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/smr#NYSE">SMR</a>) gained 17.5% to $4.89.</li>
<li><strong>The ONE Group Hospitality, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/stks#NASDAQ">STKS</a>) shares climbed 17.2% to $4.70 after the company announced that it will acquire Safflower Holdings.</li>
<li><strong>Trump Media &amp; Technology Group Corp. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/djt#NASDAQ">DJT</a>) climbed 16.7% to $67.68 after jumping 16% on Tuesday.</li>
<li><strong>nCino, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ncno#NASDAQ">NCNO</a>) rose 15.2% to $34.78 as the company reported better-than-expected fourth-quarter results and issued FY25 adjusted earnings guidance above estimates..</li>
<li><strong>Lexicon Pharmaceuticals, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lxrx#NASDAQ">LXRX</a>) gained 11.6% to $2.22.</li>
<li><strong>Nuvation Bio Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nuvb#NYSE">NUVB</a>) rose 11.3% to $3.2050 after Jefferies upgraded the stock from Hold to Buy and raised its price target from $1.40 to $10.</li>
<li><strong>Annexon, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/annx#NASDAQ">ANNX</a>) gained 10.6% to $7.61 following quarterly results.</li>
<li><strong>NovoCure Limited</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvcr#NASDAQ">NVCR</a>) gained 8.6% to $14.19 after the company&#39;s METIS Phase 3 trial met primary endpoint, demonstrating statistically significant extension in time to intracranial progression for brain metastases from non-small cell lung cancer.</li>
<li><strong>Akebia Therapeutics, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/akba#NASDAQ">AKBA</a>) gained 8% to $2.16.</li>
<li><strong>Semtech Corporation</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smtc#NASDAQ">SMTC</a>) shares gained 7.8% to $27.12.</li>
<li><strong>Marvell Technology, Inc.</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mrvl#NASDAQ">MRVL</a>) rose 5.6% to $72.04.</li>
<li><strong>The E.W. Scripps Company</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ssp#NASDAQ">SSP</a>) gained 5.6% to $3.8650.</li>
<li><strong>Wayfair Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/w#NYSE">W</a>) rose 5.4% to $68.27.</li>
<li><strong>Merck &amp; Co., Inc.</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mrk#NYSE">MRK</a>) gained 4.4% to $131.09 after the company received FDA approval for Winrevair (sotatercept) for adults with pulmonary arterial hypertension.</li>
<li><strong>Kohl&#39;s Corporation</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>) rose 4.1% to $27.36.</li>
</ul>
<p>&nbsp;</p>
<p>Now Read This: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37956686/top-3-consumer-stocks-that-may-rocket-higher-this-quarter"><em> Top 3 Consumer Stocks That May Rocket Higher This Quarter</em></a></p>


<p>On Thursday, FedEx Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fdx#NYSE">FDX</a>) surprised Wall Street withby surpasing earnings estimates for its&nbsp;fiscal 2024 third quarter, while revenue came short of estimates. Amid a backdrop shaped by&nbsp;macroeconomic uncertainty, FedEx also narrowed its full fiscal year earnings outlook but the midpoint stayed the same as cost cuts are expected to offset a decline from lowered demand of its largest customer, the, U.S. Postal Service, who shifted away from high-margin air services in favor of lower-cost alternatives.</p>
<p>FY2024 third quarter highlights</p>
<p>For the quarter that ended on February 29th,&nbsp;$21.7 billion,&nbsp;FedEx&nbsp;reported that revenue amounted to $21.7 billion, which is lower compared to fiscal 2023&rsquo;s comparable quarter when revenue amounted to $22.8 billion.</p>
<p>However, operating income improved from fiscal 2023 third quarter&rsquo;s $1.04 billion&nbsp;to&nbsp;$1.24 billion. As a result, net income grew from $771 million to $879 million.</p>
<p>Despite declining revenue,&nbsp;operating and net income improved due to the successful&nbsp;execution of the company&rsquo;s DRIVE strategy, along with its continued focus on revenue quality.&nbsp;Through the DRIVE initiative,&nbsp;FedEx aims to lower permanent costs by&nbsp;$4 billion by fiscal 2025 and by the looks of it, these structural changes are already showing a real positive impact on the bottom line.</p>
<p>Moreover, FedEx&rsquo;s largest and most struggling unit, Express overnight delivery, also delivered good news. Its operating margin expanded from last year&rsquo;s comparable quarter, more precisely, from 1.2% to 2.5%. The unit has been struggling with declining volumes due to the U.S. Postal Service opting to use more economical carrier alternatives on the ground.</p>
<p>On Monday, the Wall Street Journal even reported that FedEx entered talks with Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) last year, to discuss teaming up on returns. FedEx and Amazon had a working relationship that ended in 2019 that included a deal to&nbsp;make U.S. ground deliveries, as Amazon not only ships billions of packages on an annual basis, but also receives millions of returns. Amazon uses United Parcel Service Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ups#NYSE">UPS</a>) and other carriers to deal with returns, as well as letting customers take their returns to third party locations, such as those of Kohl&rsquo;s Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>).</p>
<p>After posting better-than-expected earnings, FedEx executives are confident that the carrier company is on the right path to improving profitability.&nbsp;After all, their self-confidence&nbsp;&nbsp;to be able to align its network with the&nbsp;evolving demand environment while unlocking profit opportunities has been justified by delivering improved profitability amid a challenging environment. FedEx also mentioned it is in talks with&nbsp;USPS&nbsp;regarding&nbsp;a new multi-year contract agreement, as the existing one is due to expire in September.&nbsp;</p>
<p><em>DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.</em></p>
<p>&nbsp;</p>
<p class="contributor-disclaimer"><em>This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.</em></p>


Earnings

Earnings Beats

AMZN

FedEx Confidently Delivered An Earnings Growth Surprise Owed To Structural Cost Cuts

Kohl's shares are trading higher amid overall strength in consumer discretionary stocks.

<p>Morgan Stanley  analyst Kimberly Greenberger   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Underweight and raises the price target from $18 to $19.</p>


Morgan Stanley Maintains Underweight on Kohl's, Raises Price Target to $19

<p>With its fourth quarter report, Kohl&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>) came short on revenue estimates and issued a weak guidance. On a brighter note, Kohl&rsquo;s swung from a net loss in last year&rsquo;s comparable quarter to a net income and announced its plans to add&nbsp;Babies R Us&nbsp;baby gear&nbsp;to approximately 200 of its stores&nbsp;in the fall to combat off-price and discount retailers like TJX Companies (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tjx#NYSE">TJX</a>) and Target (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tgt#NYSE">TGT</a>).</p>
<h3>Holiday Quarter Highlights</h3>
<p>For the quarter ended on February 3rd, Kohl&rsquo;s reported&nbsp;net sales&nbsp;contracted&nbsp;1.1%&nbsp;YoY&nbsp;to&nbsp;$5.71&nbsp;billion. Kohl&rsquo;s was helped by an extra week in this year&rsquo;s holiday quarter, like its retail peers. But Kohl&rsquo;s turned from a net loss of&nbsp;273 million, or $2.49 per share it reported for last year&rsquo;s comparable quarter, to reporting&nbsp;a net income&nbsp;$186 million, or $1.67 per share, surpassing&nbsp;FactSet&rsquo;s consensus of&nbsp;$1.28 a share. Also on a brighter note,&nbsp;gross margin expanded&nbsp;from 23% reported for&nbsp;last&#39;s comparable quarter&nbsp;to&nbsp;32.4%.</p>
<p>Kohl&rsquo;s reported its full year sales also&nbsp;declined slightly to $16.586 billion, reflecting its ongoing battle with slumping sales.</p>
<h3>Conservative Guidance In Response To An Uncertain Macroeconomic Outlook</h3>
<p>For the year ahead, Kohl&rsquo;s is expecting&nbsp;net sales&nbsp;growth&nbsp;to range from a 1% decrease to 1% increase, with&nbsp;comparable sales&nbsp;ranging from&nbsp;flat to going up 2%.&nbsp;As for earnings per share, Kohl&rsquo;s guided in the range between&nbsp;$2.10 and $2.70, excluding any nonrecurring charges.&nbsp;All in all, Kohl&rsquo;s joined its department store retailer peers in warning 2024 will be a challenging year that is expected to further&nbsp;weaken sales growth.&nbsp;</p>
<p>The holiday quarter provided a preview of the turnaround plan.</p>
<p>CEO Tom Kingsbury&nbsp;noted that the&nbsp;Q4 comp&nbsp;result&nbsp;was the&nbsp;company&rsquo;s&nbsp;best since 2010&nbsp;as&nbsp;Kohl&rsquo;s is taking action to boost&nbsp;foot traffic and&nbsp;lure in&nbsp;younger shoppers&nbsp;in response to budget-conscious shoppers shifting towards off-price retailers like the TJX Companies and Ross Stores Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/rost#NASDAQ">ROST</a>).&nbsp;TJX surpassed analyst estimates with its holiday quarter&nbsp;performance. Increased customer transactions during the holiday season&nbsp;fueled&nbsp;comparable store sales at TJX&nbsp;to rise&nbsp;5%. But even TJX guided for a weaker than expected year ahead.</p>
<p>The strategy to boost purchases in several ways.</p>
<p>With Babies R Us exclusive licensing agreement,&nbsp;Kohl&rsquo;s&nbsp;is gaining a&nbsp;potential growth driver. During the reported holiday quarter, Kohl&rsquo;s showed how it intends to snap out of its sales slump by&nbsp;adding&nbsp;pet merchandise, home decor,&nbsp;as well as&nbsp;impulse and gifting items. But while navigating a year of transition and net sales for the year contracting slightly,&nbsp;gross margin and net income&nbsp;improved as a result of strategic initiatives. Kohl&rsquo;s is positioned to perform better this year, but it still has a long way to go when it comes to achieving stellar growth.</p>
<p><em>DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.</em></p>
<p class="contributor-disclaimer"><em>This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.</em></p>


General

ROST

Kohl's Swung To A Quarterly Profit As It Showed A Preview Of Its Turnaround Strategy To Combat Slumping Sales

<p>Monday marks the last chance for investors to receive the next  dividend payout from <strong>Kohl's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>). </p>
<h3>What's Happening</h3>
<p>The company announced on Wednesday that it would pay shareholders a quarterly dividend of 50 cents per share. On Tuesday, Kohl's will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 50 cents lower than it would have opened on any other day.</p>
<p>In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Tuesday. Shareholders who own KSS as of the end of Monday's session are eligible to receive the 50 cents dividend payout for every share that they own. </p>
<p>According to the company, this dividend will be paid out to shareholders on April 03, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. </p>
<p><a href="https://www.benzinga.com/quote/KSS">Monitor live stock price updates for Kohl's on Benzinga.</a></p>


Monday Is Your Last Chance To Buy Kohl's Before The Dividend Payout

<p>Citigroup  analyst Paul Lejuez   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Neutral and lowers the price target from $27 to $24.</p>


Citigroup Maintains Neutral on Kohl's, Lowers Price Target to $24

<p>In the last three months, 7 analysts have published ratings on Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>), offering a diverse range of perspectives from bullish to bearish.</p>
<p>The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $25.29, a high estimate of $31.00, and a low estimate of $20.00. Observing a 8.08% increase, the current average has risen from the previous average price target of $23.40. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1710352879_0.png" alt="price target chart" /></p>
<h2>Interpreting Analyst Ratings: A Closer Look</h2>
<p>The standing of Kohl's among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Oliver Chen</td>
<td>TD Cowen</td>
<td>Raises</td>
<td>Outperform</td>
<td>$31.00</td>
<td>$28.00</td>
</tr>
<tr>
<td>Matthew Boss</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Neutral</td>
<td>$21.00</td>
<td>$20.00</td>
</tr>
<tr>
<td>Brooke Roach</td>
<td>Goldman Sachs</td>
<td>Maintains</td>
<td>Sell</td>
<td>$20.00</td>
<td>$20.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Raises</td>
<td>Market Perform</td>
<td>$28.00</td>
<td>$25.00</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>-</td>
</tr>
<tr>
<td>Dana Telsey</td>
<td>Telsey Advisory Group</td>
<td>Maintains</td>
<td>Market Perform</td>
<td>$25.00</td>
<td>-</td>
</tr>
<tr>
<td>Paul Lejuez</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Neutral</td>
<td>$27.00</td>
<td>$24.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Kohl's. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Kohl's compared to the broader market.</li>
<li><strong>Price Targets:</strong> Understanding forecasts, analysts offer estimates for Kohl's's future value. Examining the current and prior targets provides insight into analysts' changing expectations.</li>
</ul>
<p>Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Kohl's's market position. Stay informed and make well-informed decisions with our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/KSS/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Kohl's analyst ratings.</strong></a></p>
<h2>About Kohl's</h2>
<p>Kohl's operates about 1,170 department stores in 49 states that sell moderately priced private-label and national brand clothing, shoes, accessories, cosmetics, and home furnishings. Most of these stores are in strip centers. Kohl's also operates a large digital sales business. Women's apparel is Kohl's largest category, having generated 27% of its 2022 sales. The retailer, headquartered in Menomonee Falls, Wisconsin, opened its first department store in 1962.</p>
<h3>Financial Insights: Kohl's</h3>
<p><strong>Market Capitalization Analysis:</strong> The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.</p>
<p><strong>Negative Revenue Trend:</strong> Examining Kohl's's financials over 3 months reveals challenges. As of 31 October, 2023, the company experienced a decline of approximately <strong>-5.21%</strong> in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.</p>
<p><strong>Net Margin:</strong> Kohl's's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of <strong>1.46%,</strong> the company showcases strong profitability and effective cost management.</p>
<p><strong>Return on Equity (ROE):</strong> Kohl's's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>1.58%</strong> ROE, the company effectively utilizes shareholder equity capital.</p>
<p><strong>Return on Assets (ROA):</strong> Kohl's's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of <strong>0.39%,</strong> the company may face hurdles in achieving optimal financial performance.</p>
<p><strong>Debt Management:</strong> With a below-average debt-to-equity ratio of <strong>2.15</strong>, Kohl's adopts a prudent financial strategy, indicating a balanced approach to debt management.</p>
<h2>Understanding the Relevance of Analyst Ratings</h2>
<p>Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.</p>
<p>Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


7 Analysts Have This To Say About Kohl's

<p>Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our <a href="https://www.benzinga.com/analyst-ratings/">analyst ratings page</a>.</p>
<ul>
<li>B of A Securities raised the price target for <strong> Brown &amp; Brown, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bro#NYSE">BRO</a>) from $80 to $86. B of A Securities analyst Grace Carter downgraded the stock from Neutral to Underperform. Brown &amp; Brown shares gained 1.2% to close at $85.90 on Tuesday. <a href="https://www.benzinga.com/quote/BRO/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>TD Cowen boosted the price target for <strong> Kohl&#39;s Corporation </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>) from $28 to $31. TD Cowen analyst Oliver Chen maintained an Outperform rating. Kohl&#39;s shares fell 6.7% to close at $25.36 on Tuesday. <a href="https://www.benzinga.com/quote/KSS/analyst-ratings">See how other analysts view this stock.</a></li>
<li>BTIG cut <strong> MaxCyte, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mxct#NASDAQ">MXCT</a>) price target from $10 to $8. BTIG analyst Mark Massaro maintained a Buy rating. MaxCyte shares rose 0.3% to close at $3.98 on Tuesday. <a href="https://www.benzinga.com/quote/MXCT/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Morgan Stanley boosted the price target for <strong> Regeneron Pharmaceuticals, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/regn#NASDAQ">REGN</a>) from $1,104 to $1,115. Morgan Stanley analyst Matthew Harrison maintained an Overweight rating. Regeneron Pharmaceuticals shares gained 0.6% to close at $970.57 on Tuesday. <a href="https://www.benzinga.com/quote/REGN/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>Benchmark slashed <strong> Ooma, Inc. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ooma#NYSE">OOMA</a>) price target from $18 to $15. Benchmark analyst Matthew Harrigan maintained the stock with a Buy rating. Ooma shares fell 1.8% to close at $8.76 on Tuesday. <a href="https://www.benzinga.com/quote/OOMA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Piper Sandler raised the price target for <strong> The Beauty Health Company </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/skin#NASDAQ">SKIN</a>) from $2 to $3. Piper Sandler analyst Korinne Wolfmeyer maintained an Underweight rating. Beauty Health shares fell 1.4% to close at $3.59 on Tuesday. <a href="https://www.benzinga.com/quote/SKIN/analyst-ratings">See how other analysts view this stock.</a></li>
<li>B of A Securities increased <strong> Super Micro Computer, Inc. </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>) price target from $1,040 to $1,280. B of A Securities analyst Ruplu Bhattacharya maintained a Buy rating. Super Micro Computer shares rose 7.8% to close at $1,163.00 on Tuesday. <a href="https://www.benzinga.com/quote/SMCI/analyst-ratings">See how other analysts view this stock</a>.</li>
<li>B of A Securities boosted <strong> NVIDIA Corporation </strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) price target from $925 to $1,100. B of A Securities analyst Vivek Arya maintained a Buy rating. NVIDIA shares rose 7.2% to close at $919.13 on Tuesday. <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Wolfe Research cut <strong> The Boeing Company </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ba#NYSE">BA</a>) price target from $270 to $260. Wolfe Research analyst Myles Walton maintained an Outperform rating. Boeing shares fell 4.3% to close at $184.24 on Tuesday. <a href="https://www.benzinga.com/quote/BA/analyst-ratings">See how other analysts view this stock.</a></li>
<li>Jefferies raised <strong> Southwest Airlines Co. </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/luv#NYSE">LUV</a>) price target from $20 to $28. Jefferies analyst Sheila Kahyaoglu upgraded the stock from Underperform to Hold. Southwest Airlines shares fell 14.9% to close at $28.76 on Tuesday. <a href="https://www.benzinga.com/quote/LUV/analyst-ratings">See how other analysts view this stock.</a></li>
</ul>
<p>&nbsp;</p>
<p>Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37651162/brightcove-and-2-other-stocks-under-3-insiders-are-buying"><em> Brightcove And 2 Other Stocks Under $3 Insiders Are Buying </em></a></p>


MXCT

NVDA

OOMA

REGN

SKIN

SMCI

NVIDIA To Rally Around 20%? Here Are 10 Top Analyst Forecasts For Wednesday

<p><strong>Kohl&#39;s Corporation </strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kss#NYSE">KSS</a>) posted upbeat earnings for its <a href="https://www.benzinga.com/news/24/03/37615505/kohls-q4-highlights-earnings-beat-sales-dip-expanding-margins-more">fourth quarter on Tuesday</a>.</p>
<p>Kohl&rsquo;s reported a fourth-quarter FY23 sales decline of 1.1% year-on-year to $5.71 billion, beating the analyst consensus estimate of $5.70 billion.</p>
<p>Selling, general and administrative expenses decreased 4% Y/Y to $1.6 billion. EPS of $1.67 beat the analyst consensus estimate of $1.28.</p>
<p>&ldquo;Our store business had its best comparable sales performance since 2010, Sephora at Kohl&rsquo;s continued to drive meaningful beauty sales growth, and we managed inventory down 10% at year end,&rdquo; said CEO Tom Kingsbury.</p>
<p>For FY24, Kohl&rsquo;s expects sales growth of (1)% &ndash; 1%. It expects FY24 EPS, excluding any non-recurring charges, of $2.10 &ndash; $2.70 versus the Street view of $2.61.</p>
<p>Kohl&rsquo;s expects an FY24 operating margin of 3.6% &ndash; 4.1% and capital expenditures of about $500 million, including expansion of its Sephora partnership and other store-related investments.</p>
<p>Kohl&rsquo;s shares fell 6.7% to close at $34.29 on Tuesday.</p>
<p>These analysts made changes to their price targets on Kohl&rsquo;s following merger news</p>
<ul>
<li><strong>Telsey Advisory Group</strong> raised the price target on Kohl&rsquo;s from $25 to $28. Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating.</li>
<li><strong>JP Morgan</strong> increased the price target on Kohl&rsquo;s from $20 to $21. JP Morgan analyst Matthew Boss maintained a Neutral rating.</li>
<li><strong>TD Cowen</strong> boosted the price target on Kohl&rsquo;s from $28 to $31. TD Cowen analyst Oliver Chen maintained an Outperform rating.</li>
</ul>
<p>&nbsp;</p>
<p>Check This Out: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/03/37651162/brightcove-and-2-other-stocks-under-3-insiders-are-buying"><em> Brightcove And 2 Other Stocks Under $3 Insiders Are Buying</em></a></p>


Kohl's Analysts Increase Their Forecasts After Q4 Results

<p>TD Cowen  analyst Oliver Chen   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Outperform and raises the price target from $28 to $31.</p>


TD Cowen Maintains Outperform on Kohl's, Raises Price Target to $31

<p>JP Morgan  analyst Matthew Boss   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Neutral and raises the price target from $20 to $21.</p>


JP Morgan Maintains Neutral on Kohl's, Raises Price Target to $21

<p>Goldman Sachs  analyst Brooke Roach   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Sell and maintains $20 price target.</p>


Goldman Sachs Maintains Sell on Kohl's, Maintains $20 Price Target

<p>Telsey Advisory Group  analyst Dana Telsey   maintains Kohl's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) with a Market Perform and raises the price target from $25 to $28.</p>


Telsey Advisory Group Maintains Market Perform on Kohl's, Raises Price Target to $28

<p>It was a mixed morning on Wall Street, with major U.S. indices recording gains, primarily due to a tech outperformance, although losses emerged on bonds, gold, and<strong> Bitcoin</strong> following a <a href="https://www.benzinga.com/markets/equities/24/03/37615483/inflation-rises-more-than-expected-to-3-2-rebuffs-expectations-of-june-fed-rate-cut">stronger-than-expected inflation report.</a></p>
<p>The S&amp;P 500 index rose by 0.9%, while the tech-heavy Nasdaq 100 rallied 0.9%. Within the tech space, chipmakers shined, with the <strong>VanEck Semiconductor ETF</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) up 2%.</p>
<p>The February Consumer Price Index (CPI) rose by 3.2% year-on-year, exceeding both the previous and expected 3.1% surge. Additionally, the core CPI index, which strips out volatile food and energy items, surprised to the upside at 3.8%, compared to the expected 3.7%.</p>
<p>Treasury yields moved higher, with the policy-sensitive two-year yield soaring by 6 basis points to 4.6% and the 10-year yield rising by 7 basis points to 4.17%.</p>
<p>Markets held firm on expectations for a June rate cut, envisioning a 70% chance, according to the CME Group FedWatch tool.</p>
<p>The Fed is set to hold its two-day policy meeting in a week, during which policymakers will unveil the new macroeconomic projections, revealing the preferred interest rate path.</p>
<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>
<p><figure class="wp-block-table is-style-stripes"><br />
<table>
<tbody>
<tr>
<td><strong>Major Indices &amp; ETFs</strong></td>
<td><strong>Price</strong></td>
<td><strong>%</strong></td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,139.35</td>
<td>1.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,162.83</td>
<td>0.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,936.96</td>
<td>0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,056.13</td>
<td>-0.5%</td>
</tr>
</tbody>
</table>
<p></p></figure></p>
<p>The <strong>SPDR S&amp;P 500 ETF Trust</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.8% to $515.04, the <strong>SPDR Dow Jones Industrial Average</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) inched 0.4% higher to $389.95 and the tech-heavy <strong>Invesco QQQ Trust</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 1% to $441.69, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>. </p>
<p>Sector-wise, the&nbsp;<strong>Technology</strong>&nbsp;<strong>Select Sector SPDR Fund</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), was the top performer, up by 1.4%, while the&nbsp;<strong>Utilities Select Sector SPDR Fund</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) trailed, down by 0.7%.</p>
<h3 class="wp-block-heading">&nbsp;Tuesday&#8217;s Stock Movers </h3>
<ul>
<li><strong>Oracle Corp.</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>) rallied over 12% after reporting better-than-expected quarterly results.</li>
<li><strong>Taiwan Semiconductor Manufacturing Company Ltd.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSMC#NYSE">TSMC</a>) rose over 3% after obtaining grants worth over $5 billion from the U.S. Department of Commerce for chip production. </li>
<li><strong>Southwest Airlines Company </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) tumbled 15% after announcing a sharp decline in <strong>Boeing </strong>737-8 plane deliveries, from the 79 previously expected to 46 for 2024.</li>
<li>Other stocks moving on earnings were <strong>Asana, Inc. </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ASAN#NYSE">ASAN</a>) (down about 11%), <strong>Vail Resorts, Inc.</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTN#NYSE">MTN</a>) (up 1.5%), <strong>Archer-Daniels-Midland Company </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADM#NYSE">ADM</a>) (up 4.5%), <strong>International Game Technology PLC</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGT#NYSE">IGT</a>) (down over 6%) and <strong>Kohl&#8217;s Corporation </strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KSS#NYSE">KSS</a>) (down over 5%). </li>
</ul>
<p>Read now: <em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37627788/inflation-tops-forecasts-in-february-as-stocks-rally-7-economists-react">Inflation Tops Forecasts In February &#8211; &#8216;I Think Powell Will Be Upset&#8217;: 7 Economists React</a></em></p>
<p><em>Wall Street illustration created using AI via MidJourney.</em></p>


Equities

Large Cap

Macro Economic Events

Broad U.S. Equity ETFs

Econ #s

Economics

Federal Reserve

ETFs

ASAN

SPDR Dow Jones Industrial Average ETF Trust

ORCL

TSMC

Stocks Soar On Tech Rally; Inflation Fuels Higher Yields, Bitcoin Drops Below $70,000: What's Driving Markets Tuesday?

Ulta Beauty: The Official End Of The 'Lipstick Effect' Tailwinds

Kohls Corp (KSS) is the highest overall rated company in the Department Stores industry with an overall score of 67. KSS is up 22.80% so far this year after the company closed yesterday at $29.35.  The overall score measures the company's performance based-off both short and long term indicators and means that KSS scores b

Should Kohls Corp (KSS) Stock Be in Your Portfolio?

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<p><a href="https://investorplace.com/industries/technology/artificial-intelligence/">AI stocks</a>, <a href="https://investorplace.com/industries/healthcare/biotech/">biotech stocks</a>, and renewable <a href="https://investorplace.com/industries/energy/">energy stocks</a> dominate the list of <a href="https://www.marketwatch.com/tools/screener/short-interest">most shorted stocks</a>, but there also many <a href="https://investorplace.com/industries/consumer-discretionary/">consumer discretionary stocks</a> short sellers are betting against.</p>



<p>There is an excellent reason for this. Even as the U.S. economy remains resilient, despite challenges such as high inflation and high interest rates, a continued &ldquo;soft landing&rdquo; is hardly a guarantee.</p>



<p>As inflation remains elevated, and as <a href="https://www.barrons.com/articles/fed-talk-powell-bostic-speech-rate-cut-inflation-dcf95f67">recent statements from Federal Reserve officials</a> suggest that the central bank is walking back its &ldquo;Fed pivot&rdquo; plans for 2024, high rates may persist longer than expected. In time, this could finally affect economic growth, affecting sectors most hard hit (like consumer discretionary) by such a change.</p>



<p>Alongside macro-related reasons, there are also company-specific reasons the short side is so heavy with certain consumer discretionary stocks. These include poor fundamentals, rich valuations, and other concerns that may snowball into major issues.</p>



<p>Below are the top seven consumer discretionary stocks short sellers are betting against. Let&rsquo;s take a closer look and see whether the bears are on the right or wrong side of the trade.</p>



<h2>Carvana (CVNA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/cvna1600-300x169.png" alt="Carvana (CVNA) automobile dealership vending machine. Carvana is an online-only used car dealer."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>Rebounding twelvefold off its 52-week low, <strong>Carvana</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cvna-stock-quote/"><strong>CVNA</strong></a>) has made short-squeeze traders very rich, but has caused billions in losses for the short-seller community. Yet while one would think this would scare off the bears, that hasn&rsquo;t been the case.</p>



<p>CVNA has continued to have high short interest. At present, around <a href="https://fintel.io/ss/us/cvna">33.8%</a> of the online used car retailer&rsquo;s outstanding float is sold short. While fading Carvana was a losing trade in 2023, and has stayed one thus far in 2024, those betting against that meme stock at today&rsquo;s price could have the last laugh.</p>



<p>While Carvana has been successful in its <a href="https://seekingalpha.com/news/4070713-carvana-shares-rally-company-nears-profitability">efforts to improve gross margins</a>, analyst consensus stills call for net losses to persist <a href="https://www.wsj.com/market-data/quotes/CVNA">through at least 2026</a>. Even if the company manages to hit the top end of estimates, and become consistently profitable, shares trade at a high multiple to peers based on these ambitious forecasts. </p>



<h2>Kura Sushi USA (KRUS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/sushi1600-300x169.jpg" alt="Two rolls of sushi on a platter."><div>Source: Shutterstock</div></div><p><strong>Kura Sushi USA</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/krus-stock-quote/"><strong>KRUS</strong></a>) is another of the top consumer discretionary stocks short sellers are betting against. <a href="https://fintel.io/ss/us/krus">24.7%</a> of the revolving sushi bar operator&rsquo;s outstanding shares have been sold short.</p>



<p>You don&rsquo;t have to look far to determine the bear case for KRUS stock. Yes, Kura Sushi appears to be growing at a rapid clip. Forecasts call for revenue to rise by around <a href="https://seekingalpha.com/symbol/KRUS/earnings">27%</a> next fiscal year (ending August 2025), and for earnings to more than double during that time frame.</p>



<p>However, a valuation of 296.2 times forward earnings is simply too rich, even when taking this fast growth into account. </p>



<p>More importantly, with shares &ldquo;priced to perfection&rdquo; to such a degree, there&rsquo;s a lot more out there that could knock KRUS lower rather than send it higher. Even the reporting of results in line with expectations could drive disappointment, leading to a heavy reversal for shares.</p>



<h2>Kohl&rsquo;s (KSS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/kohls-stock-300x169.jpg" alt="Image of Kohl's logo on a Kohl's store"><div>Source: Sundry Photography/Shutterstock.com</div></div><p>At first glance, <strong>Kohl&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/kss-stock-quote/"><strong>KSS</strong></a>) may seem ripe for a short-squeeze. Shares in the department store chain trade at a low valuation of 10.6 times forward earnings. </p>



<p>With the company&rsquo;s fiscal performance already squeezed by high inflation, you may think that results could improve dramatically, if optimistic forecasts calling for easing inflation play out.</p>



<p>Add in other factors, like <a href="https://seekingalpha.com/news/4063389-kohls-gains-amid-report-activist-pushing-for-sale">activist investor involvement</a>, and you really think KSS stock is a deep value opportunity. However, while well-aware of these positives, the bears who have sold <a href="https://fintel.io/ss/us/kss">31.8%</a> of KSS&rsquo;s outstanding float believe several key negatives will make this would-be deep value play a value trap instead.</p>



<p>Based on the latest guidance, the company expects <a href="https://www.reuters.com/business/retail-consumer/kohls-posts-smaller-drop-holiday-quarter-sales-than-expected-2024-03-12/">further weak results in 2024</a>. As InvestorPlace&rsquo;s Jeremy Flint argued last month, in the years ahead, Kohl&rsquo;s could <a href="https://investorplace.com/2024/03/edge-of-the-abyss-3-stocks-flirting-with-disaster/">end up going the way of <strong>Sears</strong></a>, because of its continued inability to become an omnichannel retailer.</p>



<h2>Luminar Technologies (LAZR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/02/luminar-lazr-1600-sign-300x169.jpg" alt="Luminar (LAZR stock) sign with greenery around it"><div>Source: JHVEPhoto/shutterstock.com</div></div><p>Lidar stocks like <strong>Luminar Technologies</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/lazr-stock-quote/"><strong>LAZR</strong></a>) were very popular during the runaway bull market of 2021. Since then, though, these autonomous driving technology plays have fallen fully out of favor.</p>



<p>During this time frame, LAZR stock has fallen by more than 95%, to just over $2 per share. </p>



<p>While the short-side has already profited massively from this trade, many of them have yet to close out positions. At least, based upon the fact <a href="https://fintel.io/ss/us/lazr">26.9%</a> of LAZR&rsquo;s outstanding float remains sold short. Clearly, the shorts see Luminar falling towards zero. </p>



<p>Due to EV demand decline, ongoing high net losses, and dwindling cash, LAZR is a top target for short sellers. While you don&rsquo;t need to short it, take the hint: avoid at all costs.</p>



<h2>Lucid Group (LCID)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/lcid_1600_1934759942-300x169.png" alt="Exterior of Lucid Motors (LCID) building"><div>Source: gg5795 / Shutterstock.com</div></div><p>As I&rsquo;ve argued in past articles discussing <strong>Lucid Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/lcid-stock-quote/"><strong>LCID</strong></a>), the bear case is pretty clear-cut. Shares in this early-stage EV manufacturer are in <a href="https://investorplace.com/2024/03/7-nasdaq-stocks-to-sell-in-march-before-they-crash-burn/">a dilution spiral</a>. Lucid has failed to gain traction as a major EV brand. </p>



<p>Production and sales have both fallen far short of initial forecasts. Throw in the curveball of the aforementioned EV growth slump, and Lucid has reported consistently-high operating losses as a result. In order to cover these losses, the company has raised capital by selling additional shares of stock.</p>



<p>Primarily, to Lucid&rsquo;s majority owner, Saudi Arabia&rsquo;s Public Investment Fund (PIF). As the share count rises, while underlying results fail to improve, the per-share value of LCID stock has, and is likely to continue to, decline. With <a href="https://fintel.io/ss/us/lcid">28.9%</a> of LCID&rsquo;s outstanding float sold short, the short seller community has come to a similar conclusion about this down-and-out EV play.</p>



<h2>Lovesac (LOVE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/08/love1600-300x169.png" alt="Lovesac store sign at Florida Mall in Orlando, Florida, USA. Lovesac is an American furniture retailer, specializing in a patented modular furniture system. LOVE stock."><div>Source: JHVEPhoto / Shutterstock.com</div></div><p>Home furnishings company <strong>Lovesac</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/love-stock-quote/"><strong>LOVE</strong></a>) is one of the consumer discretionary stocks short sellers are betting against. 26.1% of outstanding float has been sold short.</p>



<p>Last summer, I argued that heavily-shorted LOVE stock was a situation where <a href="https://investorplace.com/2023/08/7-retail-stocks-due-for-a-massive-short-squeeze/">going long was a better move than going short</a>. </p>



<p>Lovesac appeared on track to beat expectations, and guide for better times ahead. However, while the company&rsquo;s fiscal results have beat <a href="https://seekingalpha.com/news/4043953-lovesac-jumps-10-after-stronger-than-anticipated-earnings-report">expectations in recent quarters</a>, analysts have walked back expectations for future results.</p>



<p>At one point forecasting earnings of $3 per share for the fiscal year ending January 2025, consensus now calls for earnings of $2.09 per share. Even this reduced forecast could be walked-back further. </p>



<p>As <em>InvestorPlace&rsquo;s</em> Matthew Farley pointed out last month, Lovesac keeps <a href="https://investorplace.com/2024/03/3-sorry-retail-stocks-to-sell-in-march-while-you-still-can/">struggling to improve its margins</a>. Improved results for Loveac may also hinge heavily on a further &ldquo;soft landing&rdquo; for the U.S. economy.</p>



<h2>Wayfair (W)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/wayfair1600-300x169.jpg" alt="The Wayfair (W) logo on the screen of a mobile phone with a purple background"><div>Source: rafapress / Shutterstock.com</div></div><p>Recently, sell-siders have become more bullish about <strong>Wayfair</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/w-stock-quote/"><strong>W</strong></a>). For instance, on April 4, Evercore ISI&rsquo;s Oliver Wintermantel <a href="https://www.barrons.com/articles/wayfair-stock-new-bull-ad629033?mod=md_stockoverview_news">upgraded</a> the home furnishing online retailer&rsquo;s shares to &ldquo;outperform.&rdquo;</p>



<p>In Wintermantel&rsquo;s view, following the company&rsquo;s successful cost reduction efforts, it&rsquo;s well-positioned to report very strong results later this year, as the housing market recovers. </p>



<p>Yet while the Wall Street analyst community is warming back up to W stock, the same can&rsquo;t be said about the so-called &ldquo;smart money&rdquo; short-sellers.</p>



<p><a href="https://fintel.io/ss/us/w">23.6%</a> of W&rsquo;s outstanding float remains sold short. While not certain, this may be because, assuming a comeback does indeed arrive later this year, it&rsquo;s likely more than priced-in by now. </p>



<p>Shares today trade for around <a href="https://seekingalpha.com/symbol/W/earnings">60 times estimated 2024 earnings</a>, and nearly 30 times estimated 2025 earnings. If a late-2024 housing rebound fails to arrive, W may be at risk of a big correction.</p>



<p><em>On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com </em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>.</em></p>
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<p>The post <a href="https://investorplace.com/2024/04/7-consumer-discretionary-stocks-short-sellers-are-betting-will-fall-from-grace/">7 Consumer Discretionary Stocks Short Sellers are Betting Will Fall from Grace</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

7 Consumer Discretionary Stocks Short Sellers are Betting Will Fall from Grace

The secular headwinds continue for the department store sector

Stocks with the least price swings, most attractive option-sale candidates - JPM

Kohl's Corporation: Core Business Going Strong With Opportunities In Adjacent Categories

Retail rallies after consumers keep spending at a solid pace in March

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p><a href="https://investorplace.com/industries/technology/artificial-intelligence/">AI stocks</a>, <a href="https://investorplace.com/industries/healthcare/biotech/">biotech stocks</a>, and renewable <a href="https://investorplace.com/industries/energy/">energy stocks</a> dominate the list of <a href="https://www.marketwatch.com/tools/screener/short-interest">most shorted stocks</a>, but there also many <a href="https://investorplace.com/industries/consumer-discretionary/">consumer discretionary stocks</a> short sellers are betting against.</p>



<p>There is an excellent reason for this. Even as the U.S. economy remains resilient, despite challenges such as high inflation and high interest rates, a continued &ldquo;soft landing&rdquo; is hardly a guarantee.</p>



<p>As inflation remains elevated, and as <a href="https://www.barrons.com/articles/fed-talk-powell-bostic-speech-rate-cut-inflation-dcf95f67">recent statements from Federal Reserve officials</a> suggest that the central bank is walking back its &ldquo;Fed pivot&rdquo; plans for 2024, high rates may persist longer than expected. In time, this could finally affect economic growth, affecting sectors most hard hit (like consumer discretionary) by such a change.</p>



<p>Alongside macro-related reasons, there are also company-specific reasons the short side is so heavy with certain consumer discretionary stocks. These include poor fundamentals, rich valuations, and other concerns that may snowball into major issues.</p>



<p>Below are the top seven consumer discretionary stocks short sellers are betting against. Let&rsquo;s take a closer look and see whether the bears are on the right or wrong side of the trade.</p>



<h2>Carvana (CVNA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/11/cvna1600-300x169.png" alt="Carvana (CVNA) automobile dealership vending machine. Carvana is an online-only used car dealer."><div>Source: Ken Wolter / Shutterstock.com</div></div><p>Rebounding twelvefold off its 52-week low, <strong>Carvana</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/cvna-stock-quote/"><strong>CVNA</strong></a>) has made short-squeeze traders very rich, but has caused billions in losses for the short-seller community. Yet while one would think this would scare off the bears, that hasn&rsquo;t been the case.</p>



<p>CVNA has continued to have high short interest. At present, around <a href="https://fintel.io/ss/us/cvna">33.8%</a> of the online used car retailer&rsquo;s outstanding float is sold short. While fading Carvana was a losing trade in 2023, and has stayed one thus far in 2024, those betting against that meme stock at today&rsquo;s price could have the last laugh.</p>



<p>While Carvana has been successful in its <a href="https://seekingalpha.com/news/4070713-carvana-shares-rally-company-nears-profitability">efforts to improve gross margins</a>, analyst consensus stills call for net losses to persist <a href="https://www.wsj.com/market-data/quotes/CVNA">through at least 2026</a>. Even if the company hits the top end of estimates, and become consistently profitable, shares trade at a high multiple to peers based on these ambitious forecasts. </p>



<h2>Kura Sushi USA (KRUS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/sushi1600-300x169.jpg" alt="Two rolls of sushi on a platter."><div>Source: Shutterstock</div></div><p><strong>Kura Sushi USA</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/krus-stock-quote/"><strong>KRUS</strong></a>) is another of the top consumer discretionary stocks short sellers are betting against. <a href="https://fintel.io/ss/us/krus">24.7%</a> of the revolving sushi bar operator&rsquo;s outstanding shares have been sold short.</p>



<p>You don&rsquo;t have to look far to determine the bear case for KRUS stock. Yes, Kura Sushi appears to be growing at a rapid clip. Forecasts call for revenue to rise by around <a href="https://seekingalpha.com/symbol/KRUS/earnings">27%</a> next fiscal year (ending August 2025), and for earnings to more than double during that time frame.</p>



<p>However, a valuation of 296.2 times forward earnings is simply too rich, even when taking this fast growth into account. </p>



<p>More importantly, with shares &ldquo;priced to perfection&rdquo; to such a degree, there&rsquo;s a lot more out there that could knock KRUS lower rather than send it higher. Even the reporting of results in line with expectations could drive disappointment, leading to a heavy reversal for shares.</p>



<h2>Kohl&rsquo;s (KSS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/kohls-stock-300x169.jpg" alt="Image of Kohl's logo on a Kohl's store"><div>Source: Sundry Photography/Shutterstock.com</div></div><p>At first glance, <strong>Kohl&rsquo;s</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/kss-stock-quote/"><strong>KSS</strong></a>) may seem ripe for a short-squeeze. Shares in the department store chain trade at a low valuation of 10.6 times forward earnings. </p>



<p>With the company&rsquo;s fiscal performance already squeezed by high inflation, you may think that results could improve dramatically, if optimistic forecasts calling for easing inflation play out.</p>



<p>Add in other factors, like <a href="https://seekingalpha.com/news/4063389-kohls-gains-amid-report-activist-pushing-for-sale">activist investor involvement</a>, and you really think KSS stock is a deep value opportunity. However, while well-aware of these positives, the bears who have sold <a href="https://fintel.io/ss/us/kss">31.8%</a> of KSS&rsquo;s outstanding float believe several key negatives will make this would-be deep value play a value trap instead.</p>



<p>Based on the latest guidance, the company expects <a href="https://www.reuters.com/business/retail-consumer/kohls-posts-smaller-drop-holiday-quarter-sales-than-expected-2024-03-12/">further weak results in 2024</a>. As InvestorPlace&rsquo;s Jeremy Flint argued last month, in the years ahead, Kohl&rsquo;s could <a href="https://investorplace.com/2024/03/edge-of-the-abyss-3-stocks-flirting-with-disaster/">end up going the way of <strong>Sears</strong></a>, because of its continued inability to become an omnichannel retailer.</p>



<h2>Luminar Technologies (LAZR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/02/luminar-lazr-1600-sign-300x169.jpg" alt="Luminar (LAZR stock) sign with greenery around it"><div>Source: JHVEPhoto/shutterstock.com</div></div><p>Lidar stocks like <strong>Luminar Technologies</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/lazr-stock-quote/"><strong>LAZR</strong></a>) were very popular during the runaway bull market of 2021. Since then, though, these autonomous driving technology plays have fallen fully out of favor.</p>



<p>During this time frame, LAZR stock has fallen by more than 95%, to just over $2 per share. </p>



<p>While the short-side has already profited massively from this trade, many of them have yet to close out positions. At least, based upon the fact <a href="https://fintel.io/ss/us/lazr">26.9%</a> of LAZR&rsquo;s outstanding float remains sold short. Clearly, the shorts see Luminar falling towards zero. </p>



<p>Due to EV demand decline, ongoing high net losses, and dwindling cash, LAZR is a top target for short sellers. While you don&rsquo;t need to short it, take the hint: avoid at all costs.</p>



<h2>Lucid Group (LCID)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/lcid_1600_1934759942-300x169.png" alt="Exterior of Lucid Motors (LCID) building"><div>Source: gg5795 / Shutterstock.com</div></div><p>As I&rsquo;ve argued in past articles discussing <strong>Lucid Group</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/lcid-stock-quote/"><strong>LCID</strong></a>), the bear case is pretty clear-cut. Shares in this early-stage EV manufacturer are in <a href="https://investorplace.com/2024/03/7-nasdaq-stocks-to-sell-in-march-before-they-crash-burn/">a dilution spiral</a>. Lucid has failed to gain traction as a major EV brand. </p>



<p>Production and sales have both fallen far short of initial forecasts. Throw in the curveball of the aforementioned EV growth slump, and Lucid has reported consistently high operating losses as a result. In order to cover these losses, the company has raised capital by selling additional shares of stock.</p>



<p>Primarily, to Lucid&rsquo;s majority owner, Saudi Arabia&rsquo;s Public Investment Fund. As the share count rises, while underlying results don&rsquo;t improve, the per-share value of LCID stock has, and is likely to continue to, decline. With <a href="https://fintel.io/ss/us/lcid">28.9%</a> of LCID&rsquo;s outstanding float sold short, the short seller community has come to a similar conclusion about this down-and-out EV play.</p>



<h2>Lovesac (LOVE)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/08/love1600-300x169.png" alt="Lovesac store sign at Florida Mall in Orlando, Florida, USA. Lovesac is an American furniture retailer, specializing in a patented modular furniture system. LOVE stock."><div>Source: JHVEPhoto / Shutterstock.com</div></div><p>Home furnishings company <strong>Lovesac</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/love-stock-quote/"><strong>LOVE</strong></a>) is one of the consumer discretionary stocks short sellers are betting against. 26.1% of outstanding float has been sold short.</p>



<p>Last summer, I argued that heavily-shorted LOVE stock was a situation where <a href="https://investorplace.com/2023/08/7-retail-stocks-due-for-a-massive-short-squeeze/">going long was a better move than going short</a>. </p>



<p>Lovesac appeared on track to beat expectations, and guide for better times ahead. However, while the company&rsquo;s fiscal results have beat <a href="https://seekingalpha.com/news/4043953-lovesac-jumps-10-after-stronger-than-anticipated-earnings-report">expectations in recent quarters</a>, analysts have walked back expectations for future results.</p>



<p>At one point forecasting earnings of $3 per share for the fiscal year ending January 2025, consensus now calls for earnings of $2.09 per share. Even this reduced forecast could be walked-back further. </p>



<p>As <em>InvestorPlace&rsquo;s</em> Matthew Farley pointed out last month, Lovesac keeps <a href="https://investorplace.com/2024/03/3-sorry-retail-stocks-to-sell-in-march-while-you-still-can/">struggling to improve its margins</a>. Improved results for Loveac may also hinge heavily on a further &ldquo;soft landing&rdquo; for the U.S. economy.</p>



<h2>Wayfair (W)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/07/wayfair1600-300x169.jpg" alt="The Wayfair (W) logo on the screen of a mobile phone with a purple background"><div>Source: rafapress / Shutterstock.com</div></div><p>Recently, sell-siders have become more bullish about <strong>Wayfair</strong> (NYSE:<a href="https://investorplace.com/stock-quotes/w-stock-quote/"><strong>W</strong></a>). For instance, on April 4, Evercore ISI&rsquo;s Oliver Wintermantel <a href="https://www.barrons.com/articles/wayfair-stock-new-bull-ad629033?mod=md_stockoverview_news">upgraded</a> the home furnishing online retailer&rsquo;s shares to &ldquo;outperform.&rdquo;</p>



<p>In Wintermantel&rsquo;s view, following the company&rsquo;s successful cost reduction efforts, it&rsquo;s well-positioned to report very strong results later this year, as the housing market recovers. </p>



<p>Yet while the Wall Street analyst community is warming back up to W stock, the same can&rsquo;t be said about the so-called &ldquo;smart money&rdquo; short-sellers.</p>



<p>Wayfair has a <a href="https://fintel.io/ss/us/w">23.6%</a> outstanding float sold short. While not certain, this may be because, assuming a comeback does indeed arrive later this year, it&rsquo;s likely more than priced-in by now. </p>



<p>Shares today trade for around <a href="https://seekingalpha.com/symbol/W/earnings">60 times estimated 2024 earnings</a>, and nearly 30 times estimated 2025 earnings. If a late-2024 housing rebound fails to arrive, W may be at risk of a big correction.</p>



<p><em>On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com </em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>.</em></p>
<div><p>Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.</p></div><h3>More From InvestorPlace</h3>
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						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
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						<div></div>
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<p>The post <a href="https://investorplace.com/2024/04/7-consumer-discretionary-stocks-short-sellers-are-betting-will-fall-from-grace/">7 Consumer Discretionary Stocks Short Sellers are Betting Will Fall from Grace</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Macy's: A Sell On Rising Credit Card Delinquencies

Retail stocks have been on the ropes for some time now, and things aren't looking much brighter as we approach the summer months. Typically, that's...

Rising Oil Prices, Troubled Shipping Proves Mixed Bag for Retail Stocks

CACC

COST

CPRI

CVNA

DDOG

DLTR

ETSY

ILMN

INTU

KRUS

LAZR

LCID

LOVE

LULU

LVMHF

PAYC

ULTA

Press Releases

Kohl's Donates $1.5 Million to Hunger Task Force, Marking 15 Years of Feeding Milwaukee Families Together

After Two Seasons Of Netflix Show, Kartoon Studios (AMEX: TOON) Continues To Expand 'Llama Llama' Franchise Through Partnership With Penguin Young Readers

Commodities

ROLLINS, INC. ANNOUNCES CHANGES TO ITS BOARD OF DIRECTORS

Kohl's Declares Quarterly Dividend

Kohl's Named by Ethisphere as One of the 2024 World's Most Ethical Companies®

Kohl's Reports Fourth Quarter and Full Year Fiscal 2023 Financial Results

Kohl's and WHP Global Announce New Strategic Partnership for Babies"R"Us

Management

Fossil Group, Inc. Announces Leadership Changes

Kohl's Unveils New Approach to Home, Delivering a New and Expanded Assortment of Stylish and Affordable Home and Seasonal Decor

Kohl's Donates $5 Million to Alliance for a Healthier Generation to Improve Family Health & Wellness Nationwide

FOSL

NFLX

TOON

Amazon.com

Alibaba Group Holding Limited American Depositary Shares each representing eight Ordinary share

Alibaba Gr Holding

Big Lots

Baozun

Coupang

Dillard's

1stdibs.com

eBay

Etsy

Global E Online

Groupon

D-Market Electronic Services & Trading - American Depositary Shares

D-MARKET Electronic

JD.com, Inc. - American Depositary Shares

JD.com

Jumia Technologies AG American Depositary Shares, each representing two Ordinary Shares

Jumia Technologies

Nordstrom

Macy's

MercadoLibre

MINISO Group Holding Limited American Depositary Shares, each representing four Ordinary Shares

MINISO Group Holding

Ollie's Bargain Outlet Holdings, Inc. - Common Stock

Ollie's Bargain Outlet

PDD Holdings Inc. - American Depositary Shares

PDD Holdings

Qurate Retail, Inc. - Series A Common Stock

Qurate Retail

Qurate Retail, Inc. - Series B Common Stock

Savers Value Village

Vipshop Holdings Limited American Depositary Shares, each representing two ordinary shares