KSS

Kohl's shares rallied 11.8% to $24.78, driven by optimism around holiday-season initiatives including value-driven gifting and expanded same-day delivery. However, the company's consensus EPS estimate has been revised 171.4% lower over the last 30 days, and earnings growth expectations remain weak with an expected quarterly loss of $0.01 per share. Macy's, another regional department store, closed 3.2% higher but faces similar challenges with negative earnings revisions.

Kohl's (KSS) is highlighted as a strong momentum pick with a Zacks Rank #2 (Buy) rating and Momentum Style Score of B. The stock has outperformed its industry and the broader market, gaining 32.59% over the past year compared to the S&P 500's 16.58%. Recent earnings estimate revisions have been positive, with 7 upward revisions in the past two months boosting the full-year consensus estimate from $1.38 to $2.10.

Kohl's (KSS) is highlighted as a momentum stock trading at a bargain valuation. The stock shows strong recent price momentum with a 23% four-week gain and 16% twelve-week gain, while maintaining a reasonable Price-to-Sales ratio of 0.16x. With a Zacks Rank #2 (Buy) rating and Momentum Score of B, the stock is positioned as an attractive entry point for momentum investors seeking reasonably priced fast-moving stocks.

An analysis of momentum investing strategy identifies four stocks trading near their 52-week highs with strong earnings growth and undervalued metrics. HPE, ARW, KSS, and GCT are highlighted as having potential for continued upside, supported by positive catalysts, robust guidance, and consistent earnings surprises.

Zacks highlights five value stocks with attractive EV-to-EBITDA ratios as alternatives to traditional P/E-based valuation. The featured stocks—Ultrapar Participacoes, Chatham Lodging Trust, Arcos Dorados Holdings, Occidental Petroleum, and Kohl's—all carry Zacks Rank #1 or #2 ratings with Value Score A and show strong expected earnings growth for 2026.

Retail sales jumped 0.8% in September, exceeding expectations of 0.3%, demonstrating consumer resilience despite inflationary pressures. Four retail stocks with strong online presence and solid earnings growth prospects are highlighted: Abercrombie & Fitch (15.8% expected growth), Casey's General Stores (11.9%), Five Below (57.6%), and Kohl's Corporation (29.6%).

Tractor Supply Company (TSCO) is expected to report Q3 2026 revenues of $3.8 billion (up 2.3% YoY) but EPS is projected to decline 18% to 40 cents. While core merchandise demand, digital sales, and pet business initiatives should support top-line growth, cautious rural spending, softer discretionary demand, and higher operating costs are expected to pressure profitability. The company has an Earnings ESP of 0.00% and Zacks Rank #4 (Sell), suggesting limited likelihood of an earnings beat.

Macy's is strengthening its digital capabilities and AI integration across its omnichannel strategy. Digital penetration reached 31% of net sales in Q2 FY2026, with the Ask Macy's AI assistant expanding to in-store colleagues. The company raised its fiscal 2026 outlook, expecting net sales of $21.68-$21.83 billion and comparable sales growth of 1-1.5%, supported by improved operational metrics including a 7% increase in units processed per hour.