Why Kohl's Stock Skyrocketed This Week
Key Takeaways
Kohl's saw its valuation surge this week thanks to meme-stock trading and a short squeeze.
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2 min read
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real estate
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July 27, 2025
05:30 AM
The Motley Fool
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Kohl's (KSS -6 (an important development). 09%) stock recorded explosive gains over the last week of trading
Nevertheless, The company's price rose 33
Meanwhile, 5% compared to its level at the previous Friday's market close -- a stretch that saw the S&P 500 index rise 1 (this bears monitoring)
While there was no major -specific news for the company, its valuation surged thanks to meme-stock trading and a short squeeze
Even with the big rally this week, the retailer's price is still down roughly 9% in 2025 and 56% over the last three years (an important development)
Image source: Getty Images
Kohl's stock surges on meme-stock and short-squeeze momentum Kohl's stock surged as it became a play among meme-stock traders, and the momentum helped spur a moderate short squeeze that helped push its valuation even higher
Due to consistent struggles facing the retailer, investors had placed significant bets against the company by selling its stock short
Additionally, Moreover, With the company's price seeing a huge rally this week, short sellers were forced to buy back the stock they had lent out in short sales, which had the effect of pushing Kohl's stock even higher (remarkable data)
What's next for Kohl's, in light of current trends
Furthermore, Kohl's could continue to see bullish momentum connected to meme-stock trading in the near term, but the company's performance outlook is fraught
With its last, Kohl's guided for sales to fall between 5% and 7% this year
In contrast, Meanwhile, same-store sales are jected to fall between 4% and 6%, and the midpoint of the company's earnings target implies a roughly 64% annual decline in fitability
As part of the meme-stock play, some investors have jumped into the stock with expectations that the company's commercial real estate holdings could be undervalued, but that looks a risky investment thesis (remarkable data) (which is quite significant).
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