Shares of department store Kohl's surge 37% in wild trading

What the data shows is S of Kohl's surged on Tuesday, leading to a temporary halt in trading due to volatility

Conversely, Chatter on Reddit's Wall Street Bets has picked up recently Kohl's because of the stock's high short interest and its name recognition among retail investors (remarkable data)

The legacy department store's stock more than doubled in early trading, and by late morning, trading volume was nearly 17 times higher than the 30-day average (which is quite significant)

In this articleKSS your favorite stocksCREATE FREE ACCOUNTA Kohl's store in Pleasant Hill, California, on Nov, amid market uncertainty

Bloomberg | Bloomberg | Getty Imagess of Kohl's surged Tuesday in volatile trading that echoed the meme stock rallies of recent years, given current economic conditions

Conversely, Trading in the stock was temporarily halted at one point Tuesday morning

Meanwhile, the trading volume by late morning Tuesday was almost 17 times higher than the average over the past 30 days

There were no apparent corporate announcements or major stock ratings to send s soaring on Tuesday, but Kohl's has all the markings of a meme stock (this bears monitoring)

It's a legacy department store that many retail investors grew up shopping at, and it's heavily shorted, with 50% of s outstanding sold short, according to FactSet (an important development)

It has a sprawling retail foot of more than 1,100 stores and has been the subject of takeover offers, activist campaigns and bankruptcy s in recent years. "There's a lot of irrational exuberance around the stock

The evidence shows 's a very similar thing to what we saw with Bed Bath and Beyond back in the day," said Neil Saunders, managing director of GlobalData. "There's nothing really that Kohl's has done to fundamentally earn this level of increase

The data indicates that fundamentals remain quite weak. "There has been recent chatter around Kohl's stock in the Wall Street Bets forum on Reddit, which became during the GameStop short squeeze in 2021

Some pointed to it as a potential squeeze candidate given the short interest and its name recognition among retail investors (which is quite significant), amid market uncertainty

Nevertheless, When investors flock to a heavily shorted stock, those with short positions may buy more to cover their losses, which can drive the price higher (noteworthy indeed)

Beyond its price, Kohl's has been struggling for several years

However, Its sales are falling, it faces rising competition and it is currently led by an interim CEO after its former CEO Ashley Buchanan was ousted over a conflict-of-interest scandal

In May, Kohl's said it expects sales to fall between 5% and 7% in fiscal 2025, with comparable sales down between 4% and 6% (an important development)

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