Kohl's Corporation AI Price Prediction

The extremely low PE ratio relative to the stated EPS and current stock price implies the market is heavily discounting Kohl’s earnings power, typically a sign of concern about sustainability of profits or future declines. While the EPS figure of 6.62 suggests the company is currently profitable, valuation indicates investors expect weaker future performance, margin pressure, or cyclical risk. Absent evidence of strong revenue growth or margin expansion, the risk-reward profile appears skewed to the downside.

• With a share price of $19.10 and EPS of 6.62, the trailing PE of about 2.88 is far below typical U.S. retail peers, signaling that the market is pricing in significant earnings risk, structural headwinds, or potential future earnings declines.
• A PE this low is often associated with concerns about revenue stagnation, shrinking same-store sales, or margin compression; investors may be skeptical that current earnings are sustainable in a challenging department-store and off-mall retail environment.
• The disconnect between strong reported EPS and a depressed multiple suggests sentiment around Kohl’s long-term business model and competitive position is weak, supporting a cautious or bearish stance despite current profitability.

The stock has risen 6.4% over the last month, but it remains well below its 200-day moving average, indicating a longer-term downtrend is still intact. An RSI around 49 shows neither overbought nor oversold conditions, suggesting the recent bounce lacks strong momentum. Overall, technicals point to a weak trend with only a modest short-term recovery.

• At $19.10 versus a 200-day moving average of $24.65, the stock trades materially below its longer-term trend, a classic sign of a prevailing bearish or lagging pattern relative to its historical price range.
• The 6.4% one-month gain represents a short-term rebound but does not yet reverse the broader downtrend implied by the price being significantly under the 200-day moving average.
• An RSI of 48.86 is neutral, indicating neither strong buying pressure nor capitulation selling; this neutrality, combined with a depressed price versus the 200-day average, suggests a weak technical setup with limited confirmation of a sustained uptrend.

Combining the very low valuation multiple, weak longer-term technical setup, and mixed alternative data, the overall picture for Kohl’s stock leans bearish. While current earnings and traffic levels show the business is still generating significant activity, the market’s deep discount and lack of strong growth signals suggest investors remain unconvinced about the durability of profits and the long-term trajectory.

• The combination of a depressed PE ratio, price well below the 200-day moving average, and only a modest recent bounce points to persistent negative sentiment and perceived structural risk in Kohl’s business model.
• Alternative data show scale but not clear growth, and the sharp drop in app downloads undercuts the bullish case for digital engagement, reinforcing a cautious, bearish stance on the stock despite its low valuation.