Kohl's Stock Testing a Key Trendline Ahead of Earnings
Kohls Corp (NYSE:KSS) stock tapped a 12-month high of $25.22 on Dec. 1, but cratered since then, now off 24% in 2026. Yesterday KSS logged its 12th loss in the last 13 sessions, testing support at its 200-day moving average. Can the retailer stop the bleeding next week, ahead of the company's fourth-quarter earnings report?
Kohl's is scheduled to present their fourth-quarter earnings before the open on Tuesday, March 10. KSS has finished the day higher after just three of its last eight reports, including a 42.5% bull gap in November. The stock has averaged a move of 17.3% over this time frame, with investors expecting a larger-than-usual 18.9% move for Tuesday's trading.
There's massive contrarian potential around the stock given its struggles. Short interest is down 8% in the last two reporting periods, yet the 26.77 million shares sold short accounts for 24.7% of the security's available float. Should KSS bounce back next week, an unwinding of bearish bets could fuel a rally.
It could also come from the brokerage bunch, where all 12 in coverage sport a "hold" or worse rating. Keep an eye on KSS' 14-Day Relative Strength Index (RSI) as well, on the cusp of "oversold" territory at 30.
In the options pits, traders have been targeting calls. KSS sports a 10-day call/put volume ratio of 7.04 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) which stands higher than 98% of all other annual readings. Given the amount of short interest tied up in KSS, it's possible some of these calls could be bearish bettors seeking an options hedge.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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