Analysts expect Amazon to expand its physical locations and to buy an athleisure maker.
American supermarket chains, an automotive parts maker, a home goods retailer and a discount department store chain were highlighted as potential targets.
Analysts expect KSS's more realistic outlook, cost cutting and momentum to lift shares.
Kohl's has a cheap P/E ratio, a solid dividend yield and is a hub for Amazon returns in some large markets.
Speeding Bull: The stock market's winning streak may end if retail stocks and small caps continue to lag
If Amazon gets 25% of the apparel market, it would mean traditional retailers losing $60B in sales.
Kohl's and Dillard's earnings on Aug. 10 could trigger buy-the-news reactions.
Day traders are among investors scooping up beaten-down shares of Macy's, Kohl's, Target and Nordstrom
Value stocks, maligned and disrespected during the bull market, are poised to outperform
The chain's reduced margin outlook is a sign that pressure on retailers has yet to ease up in Q2.