Kohl’s
Department store operator Kohl’s Corp. (NYSE: KSS) has posted a 12-month share price decrease of about 10%. The good news is that the stock price is up 36.5% over the past three months. The stock dropped by more than 5% on May 30, following a social media-driven boycott of the store for selling LGBTQ+ merchandise during Pride Week. The effect on the stock was short-lived, though. The stock has bounced by more than 51% since then. Investors appear to take any dip in the share price as a buying opportunity.
Of 17 analysts covering the stock, just six have a Buy rating, and seven have a Hold ratings. At a share price of around $28.00, the upside potential based on a median price target of $29.00 is 3.6%. At the high price target of $50.00, the upside potential is about 78.6%.
For the retailer’s second quarter of fiscal 2024, analysts are looking for revenue of $3.71 billion, up 10.6% sequentially but down 3.9% year over year. Analysts are forecasting EPS of $0.23, up 79.3% sequentially and 79.3% lower year over year. For the full 2024 fiscal year ending next January, analysts have forecast EPS of $2.38, compared to fiscal 2023’s loss of $0.15 per share, on sales of $16.87 billion, down 1.7%.
Kohl’s stock trades at 11.8 times expected 2024 EPS, 9.6 times estimated 2025 earnings of $2.92 and 8.0 times estimated 2026 earnings of $3.51 per share. The 52-week trading range is $17.89 to $35.77. Kohl’s pays an annual dividend of $2.00 (yield of 7.1%). Total shareholder return over the past year was negative 2.61%.
Peloton
Shares of fitness product maker Peloton Interactive Inc. (NASDAQ: PTON) have declined by nearly 45% over the past 12 months. The six-month price drop is more than 48%. Peloton has done nothing to give investors a sense of confidence in the company.
Shares popped following June’s announced rebranding and tier setup. By August 1, the good vibes had reached their peak, and the price is down more than 27% in just over two weeks. Based on the weak sentiment for the stock, Peloton had better hit every mark and have a salable story for the next couple of quarters. Otherwise, shares are likely to get hammered again.
Analysts remain mildly bullish on the company. Of 27 brokerages covering the shares, 11 have a Buy or Strong Buy rating, while another 13 rate the stock at Hold. At a price of around $7.00 a share, the upside potential based on a median price target of $10.00 is 11.3%. At the high target of $20.00, the upside potential is about 186%.
For the company’s fourth quarter of fiscal 2023, which ended in June, analysts expect revenue to total $642.26 million. That would be down 14.2% sequentially and by 5.4% year over year. Analysts also expect a loss per share of $0.37, equal to the loss per share in the prior quarter and better than the $1.32 per-share loss in the year-ago quarter. For the full fiscal year, analysts estimate a loss per share of $1.97, compared to a loss of $4.62 per share in fiscal 2022 on revenue of $2.8 billion, down about 21.8%.
Peloton is not expected to post a profit in 2023, 2024 or 2025. The stock’s estimated 2023 and 2024 enterprise value to sales multiple is 1.4 times. That multiple drops to 1.2 in 2025. The 52-week trading range is $6.62 to $17.83, and Peloton does not pay a dividend. Total shareholder return over the past year is negative 45.1%.
Originally published at 24/7 Wall St.
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