Kohl’s is stable as the turnaround strategy stalls. What next?

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Kohl’s Corporation (NYSE:KSS) will announce results on March 7th. Due to the rising inflation, Kohl’s may report low to mid-single-digit growth in revenues. However, the results may not have any significant impact on the share price as the company continues to face pressure internally and from the market.

The company has been in the limelight as investors expressed interest in buying the company for about $65 a share. Kohl’s, however, rejected the offer terming it too low. The company went on communicating the board’s focus on creating strategic value for investors. Offers to buy Kohl’s came as the company was unable to demonstrate an effective turnaround strategy.

The challenges for KSS emerge from the lack of competitive advantage. The revenues of KSS have been under pressure, and costs increased as the company continued to face stiff competition. On the upcoming earnings call, investors will be keen on any plans that the company has on regaining its competitiveness or creating value.

KSS share price stable but risky

Source – TradingView

KSS shares have remained in the range of $47.15 and $62.15 since March 2021. The two prices remained the most stable support and resistance levels. A linear regression channel for this period indicates that for the most recent periods the prices have remained below the centerline. The analysis confirms a short-term declining trend.

Additionally, the trend calls for investors to exercise caution when dealing with the stock. The fair market valuation is around $55. In the medium-term to long-term, the stock may gain depending on strategy.

Summary

Kohl’s will announce results through a conference call on 7th March. Recently, the company rejected an offer to be acquired. The share price will follow the strategic decisions made by the board of the company.

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