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Kohl’s Expects Great Things with Solid Quarter Shares

Kohl’s (KSS) has evaded the recession and downturn in consumer spending with an extraordinary readiness. The department store chain that offers mid-prices has announced a 21% gain in third-quarter net income with the help of strong sales.

It is normal to see cost cuts improving the bottom line this earnings season, but Kohl’s is also benefitting from an expansion of brands exclusive to the retailer.

Kohl’s has long promoted a quantity over quality ideal that fits with the values of thrifty consumers cautiously aware of the weak economy. The company looks to gain in the coming shopping season.

Mark Miller, an analyst with William Blair & Co, recently wrote, “”Kohl’s continues to gain market share at a strong clip relative to many department stores and specialty retailers, and the company is seeing sales-trend improvement across categories and geographies,” in a note to clients.

The stock is not a huge bargain at around a 10% discount to the S&P 500 ($INX) and a 5% discount to its own 5 year average. Price targets by analysts average at $65.71, putting the upside at 17% in or around the next 12 months.

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