Retail Stocks Outperform as Kohl’s Struggles: Walmart, Amazon, and Target Emerge as Stronger Buys
Kohl's (KSS) shares appear deceptively cheap at 0.11 times sales and 8.6 times trailing earnings, but the numbers mask a deeper decline. Sales and earnings have eroded for years, with net profit margins languishing at 1.3%. Value investors face a stark reality: some stocks are discounted for good reason.
Meanwhile, retail giants Walmart (WMT), Amazon (AMZN), and Target (TGT) demonstrate why premium valuations can be justified. Walmart now delivers same-day service to 94% of U.S. households, with a quarter of expedited orders fulfilled in record time. Amazon continues to dominate e-commerce innovation, while Target maintains its stronghold in curated retail experiences.
The divergence highlights a market truth: operational momentum matters more than superficial valuation metrics. Investors increasingly favor businesses with scalable infrastructure and technological edge over legacy players clinging to outdated models.
