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Kohl's - AI Stock Analysis

Analysis generated May 30, 2024

Kohl's Corporation, headquartered in Menomonee Falls, Wisconsin, is a prominent retail chain with a substantial presence in the United States. The company operates department stores that offer a wide range of apparel, footwear, accessories, beauty, and home products. Kohl's aims to provide value to customers through mid-to-down market pricing and frequent sales events, making it a favorite among discount shoppers.

Fundamental Analysis

Kohl's reported a revenue of $5.87B for the last quarter, which represents a 48.15% increase compared to the previous quarter. This significant rise indicates robust short-term growth. However, it's worth noting that this figure shows a slight decline of 1.13% compared to the same quarter last year, which could be a potential red flag for sustained growth.

The company's net income for the last quarter stood at $186M, marking a remarkable increase of 215.25% compared to the previous quarter. Even more encouraging is the 168.13% increase in net income year-over-year, suggesting that Kohl's has managed to turn around its profitability efficiently.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $440M for the last quarter, demonstrating a growth of 50.68% from the preceding quarter and an impressive 405.56% increase from the same quarter last year. This points to a significant improvement in operational efficiency and profitability.

The current Price-to-Earnings (P/E) ratio of Kohl's is 9.53, which is relatively low. This low P/E ratio could indicate that the stock is undervalued, making Kohl's potentially attractive for value investors.

Technical Analysis

The current stock price of Kohl's is $27.25, showing a 13.83% increase over the past month. This short-term bullish trend is further emphasized by a 61.63% increase over the past year. Such positive developments indicate solid upward momentum.

Additionally, the Simple Moving Average for the last 10 days (SMA10) is currently 26.54, up from the previous SMA10 of 26.43. This minor increase signals a continued upward price movement trend.

However, the Relative Strength Index (RSI) is 89.9, suggesting that the stock could be overbought. An RSI above 70 typically signals overbought conditions, potentially leading to a bearish correction.

Alternative Data Analysis

Kohl's currently has 1,350 open positions, indicating a 23% increase in job postings over the last couple of months. This surge suggests that the company is focusing on growth and expansion, generally a healthy indicator.

However, the estimated 53M visitors to their webpage have decreased by 14% recently, which may be concerning as it implies a loss in customer interest. On a more positive note, Kohl's has seen a 44% increase in daily mobile app downloads, now standing at approximately 4,700, indicating growing digital engagement.

Regarding social media, Kohl's has maintained 1.5M followers on Instagram, showing stability in their social media presence. Meanwhile, the 750,000 followers on their Twitter page have decreased by 1%, reflecting a minor decline in online engagement.

The AltIndex AI score for Kohl’s is 41, signaling a "hold" recommendation based on a balanced view of the company's fundamentals, technicals, and alternative data.

Conclusion and Recommendation

Based on the provided data, Kohl’s shows mixed signals. The company has demonstrated strong revenue and net income growth over the last quarter, coupled with significant improvements in EBITDA, indicating enhanced operational efficiency. The stock price has appreciated significantly over both the short term and long term, reflecting positive sentiment among investors.

Nevertheless, the overbought condition indicated by the RSI and a slight year-over-year revenue decline are causes for concern. Moreover, a drop in website visitors suggests potential waning customer interest, although the increase in mobile app downloads could offset this to some extent.

With a P/E ratio of 9.53, Kohl's appears undervalued, making it potentially attractive for value-oriented investors. However, the AltIndex AI score of 41 and mixed alternative data suggest a prudent approach.

Given the mixed indicators, the prudent recommendation would be to “hold” the stock and monitor for further developments that could provide clearer direction either towards strengthening growth trends or mitigating existing concerns.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.