Bank of America Merrill Lynch sees Kohl's (NYSE:KSS) as an outlier in the department store sector as earnings approach.
"We think out-of-the box strategies (i.e., Amazon returns, Weight Watchers) and investments in athletic, new brands, and a focus on speed should continue to drive share gains and support strong free cash flow," advises the firm.
"Kohl's also is well positioned to benefit from a healthier lower-income consumer that is experiencing ongoing wage inflation."
Looking ahead, BAML has a 2019 EPS estimate of $5.81 on Kohl's vs. the consensus estimate of $5.75.
The firm has Underperform ratings on Dillard's, Macy's, Nordstrom and JCPenney - while keeping a Buy rating on Kohl's.
Subscribe for full text news in your inbox