Kohl's Looks Good for the Holidays
[PostStockWidget pricetype="live" manual_date="Nov. 21, 2012, 2:04pm GMT" symbolcodes="'KSS'" symbolprices="45" div_align="left"]
Kohl’s Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. As of May 10, 2012, it operated 1,134 stores in 49 states. The company also provides on-line shopping through its Website Kohls.com. Kohl’s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
KOHLs stores (KSS) is trading at a valuation equivalent to when the market had sold off in late 2008. Note the steadily rising earnings per share (white line).
KSS trades at 10.3X earnings and pays a 2.8% dividend. Their Return on Capital (ROC) is 18.4% and they have an earnings yield of 12.6% with a market capitalization of $10.5B.
LOW VALUATION IN KOHLS STORES AT $ 45.00 (KSS, $ 44.70)
Assuming that earnings continue their trend, the Purple Chips model sees a valuation of $USD 60 within 12 -18 months
