1 Stock to Buy, 1 Stock to Sell This Week: Nvidia, Kohl’s
Investment Report: Nvidia as Stock to Buy & Kohl’s as Stock to Sell - June 2025
Investment Report: Nvidia as Stock to Buy & Kohl’s as Stock to Sell - June 2025
Executive Summary
This report provides a detailed investment analysis of Nvidia Corporation (NVDA) as a recommended stock to buy and Kohl’s Corporation (KSS) as a stock to sell for the week of June 2025. Nvidia continues to demonstrate robust growth driven by its leadership in AI, data center, and gaming markets, supported by strong financial performance and scalable business model. Conversely, Kohl’s faces significant headwinds from shifting retail dynamics, declining comparable sales, and margin pressures, making it a less attractive investment at this time.
Nvidia Corporation (NVDA) – Stock to Buy
Company Overview
Nvidia is a global leader in graphics processing units (GPUs), AI computing, and data center solutions. The company’s products power gaming, professional visualization, data centers, and automotive markets. Nvidia’s recent strategic focus on AI and machine learning has positioned it at the forefront of the rapidly expanding AI hardware market.
Latest Financial Highlights (Fiscal Years 2022-2024)
| Fiscal Year | Revenue (Billion USD) | Net Income (Billion USD) | EBITDA (Billion USD) | Gross Margin (%) | Operating Margin (%) | EPS (Diluted) |
|---|---|---|---|---|---|---|
| 2022 | 26.97 | 9.75 | 11.2 | 65.0 | 40.0 | 4.35 |
| 2023 | 33.96 | 11.75 | 13.8 | 66.5 | 42.5 | 5.25 |
| 2024 (est.) | 43.00 | 15.20 | 18.0 | 67.0 | 44.0 | 6.80 |
Business Model and Growth Drivers
Nvidia’s business model is centered on high-performance GPUs and AI computing platforms. Core revenue streams include gaming GPUs, data center AI accelerators, and automotive AI solutions. The company benefits from high gross margins (~66%) due to proprietary technology and strong pricing power. Nvidia’s investments in AI and partnerships with cloud providers fuel scalable growth.
Key growth drivers include:
- Expanding AI adoption across industries
- Strong demand for gaming GPUs and consoles
- Data center expansion and cloud computing growth
- Automotive AI and autonomous driving technology
Quality of Earnings and Financial Health
Nvidia’s earnings quality is high, with consistent EBITDA growth and strong cash flow generation. The company’s revenue recognition policies are transparent, and non-recurring items are minimal. Operating margins have steadily improved, reflecting operational efficiency and pricing power.
Growth Trajectory and Market Position
Nvidia has delivered a compound annual growth rate (CAGR) of approximately 25% in revenue over the past three years. The company’s market leadership in GPUs and AI positions it well for continued growth. Analysts forecast revenue growth of 25-30% annually over the next 3 years, supported by AI-driven demand.
Kohl’s Corporation (KSS) – Stock to Sell
Company Overview
Kohl’s is a mid-tier department store chain operating primarily in the U.S., offering apparel, home goods, and footwear. The company has struggled with declining foot traffic, increased competition from e-commerce, and margin compression.
Latest Financial Highlights (Fiscal Years 2022-2024)
| Fiscal Year | Revenue (Billion USD) | Net Income (Million USD) | EBITDA (Million USD) | Gross Margin (%) | Operating Margin (%) | EPS (Diluted) |
|---|---|---|---|---|---|---|
| 2022 | 18.0 | 350 | 700 | 35.5 | 6.0 | 3.10 |
| 2023 | 17.2 | 280 | 600 | 34.0 | 5.0 | 2.50 |
| 2024 (est.) | 16.5 | 200 | 500 | 33.0 | 4.0 | 1.80 |
Business Model and Challenges
Kohl’s operates a traditional brick-and-mortar retail model with a growing but still limited e-commerce presence. The company’s revenue depends heavily on in-store sales, which have been declining due to changing consumer preferences and competition from online retailers like Amazon and Walmart.
Key challenges include:
- Declining foot traffic and store sales
- Margin pressure from discounting and promotions
- Inventory management issues leading to markdowns
- Limited digital transformation and e-commerce growth
Quality of Earnings and Financial Health
Kohl’s earnings quality is deteriorating, with shrinking EBITDA margins and net income. The company has reported several one-time restructuring charges and inventory write-downs in recent years. Working capital management has been suboptimal, impacting cash flow.
Growth Trajectory and Market Position
Kohl’s revenue has declined at a CAGR of approximately -4% over the past three years. The outlook remains challenging due to structural retail headwinds and competitive pressures. Without significant strategic shifts, growth prospects are limited.