Why Kohl's Stock Popped Today

KSS +7.49%

Key Points

• The retailer earned several price target increases from analysts.

• This followed an estimates-beating third quarter, reported Tuesday.

• 10 stocks we like better than Kohl's ›

Kohl's (NYSE: KSS) might be considered a meme stock currently, but on Wednesday its share price rise wasn't necessarily due to social media posts or other online commentary. Several analysts provided updates on the retailer, with most featuring price target increases. Investors took these positive takes to heart, trading the stock up by almost 8% on the day.

A surprise net profit

The analysts were reacting to Kohl's third-quarter results, which were published Tuesday morning. The company's net sales declined by almost 3% to $3.4 billion, with comparable sales down 1.7%. Net income not according to generally accepted accounting practices (GAAP) was $11 million for the period, or $0.10 per share.

Both metrics beat their corresponding consensus analyst estimates, which were for $3.3 billion on the top line and a non-GAAP (adjusted) loss of $0.18 per share.

By my count, six of those prognosticators increased their price targets on Kohl's on Wednesday. Among the raisers was TD Cowen's Oliver Chen, who now feels the stock is worth $23 per share; previously, his level was $17. He maintained his hold recommendation.

According to reports, Chen waxed bullish on the company enhancing its value-for-money reputation. He also feels it performed particularly well in sales of certain categories, such as jewelry, which helped limit the decline in the comparable sales figure.

Dogged by a certain reputation

Kohl's suffers from its meme stock status, as it's a more fundamentally sound company than others tagged with that designation. Having said that, it's still fighting against the retail apocalypse, and has struggled more than some peers to stay relevant in our Age of E-commerce. I liked how the company did in its third quarter, but there's more room for improvement in my view.

Should you buy stock in Kohl's right now?

Before you buy stock in Kohl's, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kohl's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $563,022!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,012!*

Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of November 24, 2025

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Kohl's Stock Popped Today was originally published by The Motley Fool