Kohls Corp - KSS - Monthly - Recession-Proof, Oversold & Cheap

I've posted on Kohls before and was able to catch both the back and forth waves in KSS shares and the breakout move to the high this year. Now we are being presented with an opportunity in disguise. The problem is the price is down sharply from the peak and retail has been suffering lately with Walmart getting slammed and Amazon growing its reach with online sales.

If you purely look at the numbers here, you can see Kohls makes money consistently. If you owned the company outright, you would make money through two major recessions and you would have seen revenues grow 78% in the last 10 years.

This is an impressive set of statistics for a major bricks-and-mortar retailer like Kohls.

I labeled out the risk/reward parameters of entering a long position here. 32% upside versus 11% downside. And frankly this is for long term investors. Down 11% I would not necessarily stop out a long position unless profit margins are deteriorating substantially. The company has already discounted a recession and I think you are getting a strong earning company here for a good long term price.

Tim

1:50PM EST 45.58 last KSS +0.25