FRG - Kohl's Stock Plunges 50% in 3 Months: Why I'm Buying
Just a few months ago, the stock of Kohl's (NYSE: KSS) was riding high, as a slew of bidders were offering as much as $70 per share to buy the retailer. However, following a disappointing first-quarter earnings report and guidance cut, most of Kohl's suitors lost interest.
But hopes that the company could still consummate a deal with Franchise Group (NASDAQ: FRG) limited the damage to Kohl's stock at first. Over the past month, though, growing signs of a pullback in discretionary spending undermined the proposed deal. On July 1, Kohl's officially announced that it had ended its strategic review process and would remain public.
That caused shares to crater to below $30, down from around $60 in April. But while 2022 is shaping up to be a rough year for the department store giant , its long-term prospects remain bright. As a result, I'm taking advantage of this sharp pullback to buy more Kohl's stock.
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Kohl's Stock Plunges 50% in 3 Months: Why I'm Buying