Kohl’s (KSS) is the latest stock caught in this month’s meme stock frenzy, with its share price swinging wildly. On Tuesday morning, the stock jumped about 36%, triggering several trading halts due to sharp moves. Earlier in pre-market trading, shares had more than doubled for a brief period.
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Importantly, KSS stock’s recent rally mirrors that of Opendoor (OPEN), an online residential real estate platform. OPEN stock also saw strong gains, up 10% on Tuesday, and has climbed over 300% in the past six trading sessions.
Reddit Buzz and Short Interest Fuel Kohl’s Stock
Kohl’s stock surged even though the company has not made any new announcements and its next earnings report is not due soon. Traders may be targeting it as a meme stock because 50% of its shares are currently shorted, making it a target for a short squeeze, where rising prices force short sellers to buy back shares, pushing the price even higher.
The stock has also gained attention on Reddit’s (RDDT) “wallstreetbets” forum, a popular spot for meme stock buzz.
Meme Stock Frenzy Follows Months of Struggles
This renewed interest in Kohl’s follows a period of underperformance for the company. Its stock had steadily declined from a post-pandemic peak of about $60 to a 52-week low of $6.04 in April 2025.
The company has grappled with declining sales and rising competition. Also, it is currently led by an interim CEO after former CEO Ashley Buchanan was removed over a conflict-of-interest scandal.
Moreover, the company provided a disappointing outlook in May. It projects a sales decline of 5% to 7% for Fiscal 2025, with comparable sales expected to fall between 4% and 6%.
Is KSS a Good Stock to Buy Right Now?
Turning to Wall Street, KSS stock has a Moderate Sell consensus rating based on five Holds and seven Sells assigned in the last three months. At $6.83, the average Kohl’s price target implies a 51.66% downside potential.
The analysts are likely to revise their price targets on KSS stock following today’s stock price surge.
