Retail Giant Catapulted Higher on Surprise Earnings Beat-and-Raise

Kohl's Corp (NYSE:KSS) stock is 29% higher to trade at $20.20, after the company posted a surprise third-quarter profit. Kohl's posted a quarterly earnings per share of 10 cents on revenue of $3.58 billion, drastically beating estimates of -19 cents per share. The company also raised its full-year guidance.

Ahead of today's pop, KSS had struggled to overtake the $17.50 ceiling, but remains 50% higher for 2025. Support has stemmed from the $15 floor, while today's boost has the stock eyeing its best day since July.

Analysts remain skeptical, with eight "holds," one "sell," and four "strong sells," on the slate, indicating steep bearish sentiment. However, this leaves ample room for upgrades, should the equity's stock outperformance continue to raise spirits.

The now 29.29 million shares sold short account for 27% of the stock's total available float. As short interest has shed 15% during the most recent reporting period, it would take shorts nearly five days to buy back their bearish bets.

Meanwhile, in the options pits KSS sports a 10-day put/call volume ratio of 1.75 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio indicates that traders have bought to open nearly two KSS puts for every call during the past two weeks. What's more, this ratio sits in the 100th percentile of its annual range, hinting at a much healthier-than-usual appetite for bearish bets of late.