Latest news with #Kohl's
Globe and Mail
2 hours ago
- Business
- Globe and Mail
The "DORKs" Are Going to the Moon -- but Can It Last?
Key Points Momentum investors are glomming on to a quartet of fast-rising stocks: Krispy Kreme, Opendoor, Rocket, and Kohl's. Three of the four aren't profitable, and the fourth is loaded down with a lot of debt. The stocks will do well so long as the momentum lasts -- but it won't. 10 stocks we like better than Kohl's › Forget about the BRICs, FANG stocks, and the " Magnificent Seven." Lately, the hottest group of momentum stocks"going to the moon" is the "DORKs." For those not in the know, that's the acronym awarded to donut shop Krispy Kreme (NASDAQ: DNUT), home buyer/seller Opendoor Technologies (NASDAQ: OPEN), Rocket Mortgage owner Rocket Companies (NYSE: RKT), and department store Kohl's (NYSE: KSS). Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Over the past couple of weeks, starting about mid-July and running through Friday's close, shares of Krispy Kreme stock had gained 43.5%. Opendoor soared 144.2%, Rocket rose 12.7%, and Kohl's collected a cool 38% gain. And why? Not because of any substantive news, I can tell you. Over the past two weeks, the most exciting announcements put out by this group of four stocks were Krispy Kreme's announcement of an $0.88-per-donut sale (glazed only) to celebrate its 88th birthday, and Kohl's announcement of savings on back-to-school shopping. Rocket cited a survey saying it's "#1 for client satisfaction" (yeah, and I've got a mug that assures me I'm the "world's best dad"). Opendoor announced a new two-step service whereby it buys a house, and then shares some of the profits with the seller when it resells it -- an interesting twist on the home-flipping theme, but perhaps not quite enough to explain the stock price doubling! To the contrary, after cluing in to the DORKs theme Monday, The Wall Street Journal pointed out the curiousness of investors suddenly glomming on to a pair of real estate picks in the midst of a "stagnant U.S. housing market," at the same time as it questioned the wisdom of buying Kohl's stock, which "has been losing ground to competitors for some time and has replaced its chief executive more than once in recent years." The Journal 's conclusion: "Speculative stocks are having a moment," and "YOLO bets" are back in fashion. You only live once, so invest in profitable companies while you still can But here's the problem with such "you only live once" bets in the stock market: They're a good way to kill your portfolio and ensure it won't be able to come back to life. Benjamin Graham, famed for teaching mega-investor Warren Buffett how to invest, once famously opined, "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." And two of the things that the market weighs when determining whether a stock that's gone up can stay up are its profits and its debt. That's worth keeping in mind before you dive into any of the DORK stocks yourself. Three of these stocks, after all -- Krispy Kreme, Opendoor, and Rocket -- aren't currently earning any profits at all. Kohl's is, and indeed, it earned a pretty respectable $121 million over the past year, and generated nearly that amount ($113 million) of positive free cash flow as well. Is Kohl's stock a buy? The Kohl's story gets even better when you examine the company's history, and notice that as recently as 2022, Kohl's was earning well over $900 million in annual profit -- and that analysts who follow Kohl's expect its earnings to at least double to $230 million in just a few years. The problem with even Kohl's stock, however -- and the reason I worry even this relatively more stable business will probably not be a winner -- is debt. Data from S&P Global Market Intelligence show that, while Kohl's sports a market capitalization of only $1.4 billion, which doesn't look too expensive relative to its $121 million in earnings (the P/E ratio is an unassuming 11.5), Kohl's stock is actually much more expensive than meets the eye. Against cash reserves of only $153 million, Kohl's carries $7.4 billion in debt, pushing its enterprise value up past $8.6 billion -- about 6 times more expensive than its market cap alone would suggest. So even if analysts are right about Kohl's earning nearly $230 million by, say, 2028, at today's prices, that's still a valuation of more than 37 times the earnings that Kohl's might (or might not) earn a few years from now. Long story short, even the most promising of the DORK stocks, Kohl's, is probably too risky to invest in. My advice: Don't be a dork. And don't invest in them, either. Should you invest $1,000 in Kohl's right now? Before you buy stock in Kohl's, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kohl's wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Straits Times
9 hours ago
- Business
- Straits Times
Economic anxiety leads more consumers to embrace ‘Christmas in July'
Sign up now: Get ST's newsletters delivered to your inbox Rising costs, inflation and uncertainty around tariffs are pushing shoppers, particularly parents, to take early holiday shopping more seriously. Tucked deep inside Ms Catherine Spruill's bedroom closet sit two plastic bins beneath a mountain of clothes. One holds emergency gift cards. The other, Christmas presents. She has been stockpiling gifts for the December holidays since June, hunting for summer sales across big-box retailers in her hometown, Stratford, Connecticut, stretching her income across two children, extended family and a long list of friends. Ms Spruill, 34, has already picked up more than 25 toys and video games for around US$350 (S$451). Her best find so far: matching holiday pajama sets for herself and two sons, ages 13 and three – all for US$28, thanks to a 50 per cent off sale at Kohl's. Black Friday no longer marks the beginning of the holiday retail season, as a growing number of shoppers and retailers are embracing what's being called 'Christmas in July'. 'These are the best weeks to do Christmas shopping because you're going to get more bang for your buck,' said Ms Spruill, who is a home health aide. 'Stores are trying to get rid of stuff to the point they're handing it to you.' Ms Spruill has been doing her holiday shopping months in advance since 2020, when she watched a coupon clipper on YouTube rave about using July clearance sales for holiday shopping. That same summer, she scored a bicycle on sale for US$48 at Walmart, marked down from around US$120. Over the past five years, Ms Spruill said, she has saved thousands using this strategy. Rising costs, inflation and uncertainty around tariffs are pushing shoppers, particularly parents, to take early holiday shopping more seriously. Some 21 per cent of 1,062 people surveyed by CivicScience, a Pittsburgh-based research firm, said they had already started holiday shopping this summer, up from 16 per cent in 2024. Top stories Swipe. Select. Stay informed. Singapore Grace Fu apologises for Tanjong Katong sinkhole, says road may stay closed for a few more days Singapore Terrorism threat in Singapore remains high, driven by events like Israeli-Palestinian conflict: ISD Singapore S'pore can and must meaningfully apply tech like AI in a way that creates jobs for locals: PM Wong Singapore 7, including child and firefighter, taken to hospital after fire breaks out in Toa Payoh flat Sport IOC president Kirsty Coventry a 'huge supporter' of Singapore Singapore ICA inspector obtained bribes in the form of sex acts from 6 foreign men in exchange for his help Singapore Doctor who forged certificates for aesthetic procedures gets 4 months' jail Singapore 12 motorists nabbed for providing illegal private-hire services: LTA Early holiday shopping isn't entirely new. Retailers have long nudged customers toward early-bird deals for the holiday season. But the Covid-19 pandemic helped push the timeline up even earlier because of supply chain issues and concerns over not getting gifts on time, said Mr Ted Rossman, a senior industry analyst for Bankrate. Despite ongoing uncertainty around tariffs, consumer anxiety is starting to ease. After a brief dip in May, retail sales rose 0.6 per cent in June, with year-over-year gains in big-ticket items like furniture and cars, according to the Census Bureau. 'Consumers are climbing the wall of worry and spending anyway,' Mr Rossman said. Retailers are responding to the shift in consumer activity with extended sales and deeper discounts. Amazon's Prime Day sale, which debuted in 2015 as a 24-hour event, lasted four days in 2025. Walmart and Target now run events around the same time to capture shopper attention, turning July into a broader summer sales period. Amazon reported record Prime Day sales in a news release but did not disclose exact figures. Macy's ran a 'Black Friday in July' sales event for five days starting July 23. It also marketed a 'Christmas in July' sale July 25 for the first time, offering holiday and general merchandise, according to a news release. A spokesperson for TJX, owner of T.J. Maxx and Marshalls, said in an e-mail that the company was aware that some of its customers would get a head start on their holiday shopping as early as July, but did not offer specifics on sales or traffic. Kohl's declined to comment. Target did not respond to requests for comment. Small businesses are also jumping on the trend. In Mobile, Alabama, Ms JulieAnna Lindsey organised her second annual 'Christmas in July' small-business event with more than 40 local vendors and boutique retailers selling items ranging from Christmas tree ornaments to gingerbread earrings. More than 250 people attended the one-day event at a church during the state's tax-free weekend in July. 'Now you see a ton of businesses really moving away from Black Friday, trying to really push Christmas in July to get a boost in sales,' said Ms Lindsey, 38, a middle school teacher and owner of Pink Post Office Boutique. 'More people, I feel like, are out to shop or to be going ahead and thinking about holidays now.' For some consumers, 'Christmas in July' is not just about saving money. It's also about saving time and avoiding the holiday rush for popular items. Ms Alicia Thomas, 32, was in search of a Paw Patrol aircraft carrier toy during the 2023 holiday season. Though Target's website listed it in stock in multiple stores, she said, she came up empty-handed at nearly every one she checked. She found the toy in the end but said all the stress and time she had spent driving around were unnecessary. After attending Ms Lindsey's Christmas in July event last summer in Mobile, Ms Thomas said, she decided to get a head start on holiday shopping for her three boys, ages seven, five and two. For this summer's event, she bought two outfits at a children's boutique for around US$30. Ms Kuila Cannon, 47, started her 2025 holiday shopping this spring for her four children, whose ages range from nine to 30. With few shopping options in her rural town near DeFuniak Springs, Florida, she usually drives over an hour to find gifts at various stores. So when a local boutique tucked inside a pharmacy ran a 70 per cent off sale, she jumped on it. She bought several gifts, including a grill set and a holiday advent calendar, saving nearly US$190 through discounts. The store was slashing prices to compete with a Walmart that had opened nearby, Cannon said. It was a steal for her. 'I've never seen prices like that before,' Ms Cannon said. 'That was kind of crazy.' NYTIMES
Hindustan Times
2 days ago
- Business
- Hindustan Times
Five Signs of a Market Bubble Investors Are Tracking
The share price of online house flipper Opendoor Technologies has catapulted some 377% in the past month, despite a stagnant U.S. housing market. One of the biggest stock gainers Tuesday was Kohl's, a department store that has been losing ground to competitors for some time and has replaced its chief executive more than once in recent years. On Wednesday, the crowd favorites were unusual names such as GoPro and Krispy Kreme, with both the camera company and doughnut maker notching eye-popping gains over the week. What's going on? Some investors say the action is the latest phase in what has turned into a near-euphoric rebound from April's tariff turmoil. Since the market tumbled and then turned higher, there has been a stampede into risky assets such as meme stocks, cryptocurrencies and shares of smaller companies that have yet to turn a profit. To some, this resembles a bubble—a period of frenzied market activity and speculation that artificially inflates asset values, driving prices to an eventual breaking point. 'A lot of us thought that the [spring] correction had to do with the fact that valuations were rather stretched back in January and February, yet here we are,' said Ed Yardeni, president of Yardeni Research. 'It's almost like a slow-motion melt-up.' Here's what investors are tracking for signs of froth: Speculative stocks are having a moment The return of YOLO bets recalls the heady days of 2021, when online traders briefly drove the fading mall retailer GameStop to a $24 billion valuation, before rising interest rates brought the bull market to an end. The housing market is stalled, and Opendoor shares traded under $1 earlier this month. They closed Friday at $2.54. The bets on Kohl's center on the potential sale of the company's real-estate holdings, which Wall Street has eyed for years. The stock has still slid more than 70% since the start of 2022. Unprofitability isn't much of an obstacle. Avis and Aeva Technologies, both of which reported net losses in the first quarter, are flying high. Of the 33 stocks in the Russell 3000 that have tripled in price since the market bottom in April, only six have generated profits over the past year, according to a Bespoke Investment Group analysis. Shares of the ARK Innovation ETF, a fund that includes a number of speculative companies operating at a net loss, have climbed more than 36% year to date. 'That in itself is not unhealthy,' Callie Cox, chief market strategist at Ritholtz Wealth Management, said of the rise in speculative trades. 'When you get worried is when cracks start forming in the economy, yet you still have a huge appetite for speculation.' Crypto prices are surging Prices of Ethereum and bitcoin have soared in recent weeks, lifted by the Trump administration's pro-cryptocurrency policies and growing acceptance by mainstream financial institutions. But a new group of buyers has also pushed up prices: publicly traded companies that stockpile bitcoin, effectively transforming their own shares into a leveraged bet on the cryptocurrency. Those include Trump Media & Technology Group, which announced on Monday it had accumulated about $2 billion in bitcoin and bitcoin-related securities as part of a previously announced 'bitcoin treasury strategy.' Critics caution that practice could amplify risks in the crypto market, deepening selloffs. Those warnings haven't deterred an estimated five dozen companies from pursuing similar strategies. Breadth has improved Since stocks returned to their pre-April levels, the daily moves have been small. And the rally has expanded beyond the Magnificent Seven and other tech giants to include financial companies, industrial firms and communication services. The KBW Nasdaq Bank Index has climbed more than 7% over the past month, while shares of GE energy spinoff GE Vernova and advertising tech firm Trade Desk rose more than 20% in the same period. The number of stocks in the benchmark S&P 500 closing above their 50-day moving average is hovering at levels last seen in the fall, before the postelection 'Trump bump' in share prices. Analysts typically consider that kind of improving breadth a sign of a sustainable bull market. Yet stock valuations are stretched. The equity risk premium, defined as the gap between the S&P 500's projected earnings yield and the yield on 10-year Treasurys, is close to zero. That means that the extra return for owning stocks over lower-risk bonds has nearly vanished, which investors consider an unhealthy sign. The economy is holding firm Despite initial concerns that tariffs could kick-start inflation and drag on growth, the U.S. economy has kept chugging along. There are some signs of weakness: The annual inflation rate ticked up in June, as tariffs started to affect consumer prices. One basket of leading economic indicators recently pointed to slower growth in the second half of the year. But the increase in consumer prices has so far been modest, and economists' biggest worry—a sharp slowdown in the labor market—has yet to materialize. Such a shift could turn off the tap on U.S. consumer spending, effectively halting economic growth. Private-sector job growth has fallen to the lowest level in eight months. Hiring has slowed to a trickle, and college graduates are struggling to land roles. 'At a point where the job market is clearly weakening, it's interesting that we're seeing such optimism in markets,' Cox said. 'When the job market starts slowing, it doesn't turn around easily.' Write to Hannah Erin Lang at
Mint
2 days ago
- Business
- Mint
Five signs of a market bubble investors are tracking
Stocks are doing crazy things again. The share price of online house flipper Opendoor Technologies has catapulted some 377% in the past month, despite a stagnant U.S. housing market. One of the biggest stock gainers Tuesday was Kohl's, a department store that has been losing ground to competitors for some time and has replaced its chief executive more than once in recent years. On Wednesday, the crowd favorites were unusual names such as GoPro and Krispy Kreme, with both the camera company and doughnut maker notching eye-popping gains over the week. Some investors say the action is the latest phase in what has turned into a near-euphoric rebound from April's tariff turmoil. Since the market tumbled and then turned higher, there has been a stampede into risky assets such as meme stocks, cryptocurrencies and shares of smaller companies that have yet to turn a profit. To some, this resembles a bubble—a period of frenzied market activity and speculation that artificially inflates asset values, driving prices to an eventual breaking point. 'A lot of us thought that the [spring] correction had to do with the fact that valuations were rather stretched back in January and February, yet here we are," said Ed Yardeni, president of Yardeni Research. 'It's almost like a slow-motion melt-up." Here's what investors are tracking for signs of froth: The return of YOLO bets recalls the heady days of 2021, when online traders briefly drove the fading mall retailer GameStop to a $24 billion valuation, before rising interest rates brought the bull market to an end. The housing market is stalled, and Opendoor shares traded under $1 earlier this month. They closed Friday at $2.54. The bets on Kohl's center on the potential sale of the company's real-estate holdings, which Wall Street has eyed for years. The stock has still slid more than 70% since the start of 2022. Unprofitability isn't much of an obstacle. Avis and Aeva Technologies, both of which reported net losses in the first quarter, are flying high. Of the 33 stocks in the Russell 3000 that have tripled in price since the market bottom in April, only six have generated profits over the past year, according to a Bespoke Investment Group analysis. Shares of the ARK Innovation ETF, a fund that includes a number of speculative companies operating at a net loss, have climbed more than 36% year to date. 'That in itself is not unhealthy," Callie Cox, chief market strategist at Ritholtz Wealth Management, said of the rise in speculative trades. 'When you get worried is when cracks start forming in the economy, yet you still have a huge appetite for speculation." Prices of Ethereum and bitcoin have soared in recent weeks, lifted by the Trump administration's pro-cryptocurrency policies and growing acceptance by mainstream financial institutions. But a new group of buyers has also pushed up prices: publicly traded companies that stockpile bitcoin, effectively transforming their own shares into a leveraged bet on the cryptocurrency. Those include Trump Media & Technology Group, which announced on Monday it had accumulated about $2 billion in bitcoin and bitcoin-related securities as part of a previously announced 'bitcoin treasury strategy." Critics caution that practice could amplify risks in the crypto market, deepening selloffs. Those warnings haven't deterred an estimated five dozen companies from pursuing similar strategies. Since stocks returned to their pre-April levels, the daily moves have been small. And the rally has expanded beyond the Magnificent Seven and other tech giants to include financial companies, industrial firms and communication services. The KBW Nasdaq Bank Index has climbed more than 7% over the past month, while shares of GE energy spinoff GE Vernova and advertising tech firm Trade Desk rose more than 20% in the same period. The number of stocks in the benchmark S&P 500 closing above their 50-day moving average is hovering at levels last seen in the fall, before the postelection 'Trump bump" in share prices. Analysts typically consider that kind of improving breadth a sign of a sustainable bull market. Yet stock valuations are stretched. The equity risk premium, defined as the gap between the S&P 500's projected earnings yield and the yield on 10-year Treasurys, is close to zero. That means that the extra return for owning stocks over lower-risk bonds has nearly vanished, which investors consider an unhealthy sign. Despite initial concerns that tariffs could kick-start inflation and drag on growth, the U.S. economy has kept chugging along. There are some signs of weakness: The annual inflation rate ticked up in June, as tariffs started to affect consumer prices. One basket of leading economic indicators recently pointed to slower growth in the second half of the year. But the increase in consumer prices has so far been modest, and economists' biggest worry—a sharp slowdown in the labor market—has yet to materialize. Such a shift could turn off the tap on U.S. consumer spending, effectively halting economic growth. Private-sector job growth has fallen to the lowest level in eight months. Hiring has slowed to a trickle, and college graduates are struggling to land roles. 'At a point where the job market is clearly weakening, it's interesting that we're seeing such optimism in markets," Cox said. 'When the job market starts slowing, it doesn't turn around easily." Write to Hannah Erin Lang at
Economic Times
2 days ago
- Business
- Economic Times
Return of meme stock mania has traders on alert for market froth
Meme stock enthusiasm has returned, creating uncertainty for professional investors. Stocks like Opendoor Technologies and Kohl's experienced gains. The S&P 500 and Nasdaq 100 indices reached record highs. Investors are borrowing heavily to buy stocks. Some analysts suggest caution due to high valuations. Comparisons are being drawn to the GameStop and AMC surge of 2021. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The reemergence of meme stock mania last week has professional investors facing a quandary: ride the excitement of retail traders or take it as the latest warning sign that the frothy markets are due for a speculative stocks caught up in the frenzy this week, like Opendoor Technologies and Kohl's, gave up some of their gains as the week went on, but most are still trading at their highest levels in months. The broader S&P 500 Index and Nasdaq 100 Index are doing even better, sitting at all-time highs after charging back from the early April selloff set off by President Donald Trump's tariff are indicators that investors are abandoning restraint and betting on further gains. The amount that investors are borrowing to buy stocks on the New York Stock Exchange, known as margin debt , has exceeded the tech-bubble highs to reach a new record, according to data from the Financial Industry Regulatory signs of fatigue are creeping in. The latest meme stock rally seemed to lose steam after just a few days, and Bitcoin , one of the most visible symbols of the speculative fever, has recently fallen back from its record highs. Some Wall Street trading desks have been urging clients to scoop up discounted protection against possible losses. The current run has stretched valuations, with the S&P 500 trading at nearly 23 times forward earnings, well above the ten-year average of around 18, signalling that stocks have gotten significantly more expensive."I'm seeing it and just starting to just tuck my horns in a little bit," said Eric Diton, president and managing director of the Wealth Alliance. "I'm longer-term bullish, but I'm just short-term cautious. I really think we're overdue for some kind of a pullback again because of the excessive speculation."For help in navigating the volatility, some market watchers are looking for comparisons with the most famous meme stock moment back in January 2021, when GameStop and AMC Entertainment captured the world's buying was fuelled by retail traders who were flush with stimulus checks and stuck at home, swapping tips on social media. It came after a banner year in the markets, in 2020, but ended up being only the beginning of an even bigger rally in 2021, when the S&P 500 rose another 27%. There was, though, eventually a reckoning in 2022 when the index plunged 19%, notching the worst yearly performance since the great financial crisis.
