Kohl’s Corporation (KSS) Stock Weekly Chart
Kohl’s (KSS) dropped 12% Tuesday after the company missed expectations for earnings, revenue, and guidance.
While its market cycles point to a coming bounce, we believe that will be an opportunity to sell the stock.
The company reported earnings per share of $0.61 and total revenue of $3.8 billion, compared to analyst estimates of $0.68 and $3.9 billion. Comparable stores sales also fell by a wider margin than expected as the company revised guidance lower.
CEO Michelle Gass explained, “The year has started off slower than we’d like, with our first quarter sales coming in below our expectation. But we are actively addressing the opportunities that impacted our first quarter performance.”
In analyzing the market cycles for KSS, we believe the stock is in the declining phase of its current cycle. The stock failed late last year, never fully recovered, and investors are now capitulating.
We believe that support near $54 should hold, but the coming rebound could be an opportunity to sell.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
Twitter: @askslim
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
