Kohl's Stock Is a Screaming Buy After 29% Plunge

Shares of Kohl's (NYSE: KSS) soared in early 2022 on reports that multiple suitors were interested in buying the company at a substantial premium. However, Kohl's stock has tumbled 29% over the past month as investors have grown concerned about the impact of high inflation on the retailer's sales and profitability.

Indeed, Kohl's stock reached a new 52-week low last week following a big earnings miss and guidance cut. Moreover, some bidders appear to have lost interest in buying Kohl's, while others plan to reduce their offers, according to Reuters. That said, investors have overreacted to the recent news, making Kohl's stock a great buy based on its Friday closing price of $41.87.

Three months ago, Kohl's reported that sales grew 5.8% year over year in the fourth quarter of fiscal 2021, as the department store chain continued to recover from the worst of the COVID-19 pandemic. Management cautioned that growth would slow in early 2022, though, before reaccelerating as the company made more progress on its strategic initiatives over the course of the year.

Source Fool.com