Kohl's upgraded to buy after strong Q1 and 20% rally despite YTD drop

Kohl's stock was upgraded to a buy following a better-than-expected first quarter and a 20% rally after earnings, even though it is down 20% year-to-date. Key product categories like women's apparel, kids' items, and home decor showed positive comparable sales, indicating a potential fundamental recovery. Kohl's value-oriented strategy, proprietary brands, and wide national presence position it well for growth despite challenging economic conditions. Its valuation remains attractive with a low-teens price-to-earnings ratio, making it a compelling option for contrarian investors.