The second way is to understand "kissing" as a gerund, which is where you make a verb into a noun. E.g. "Stacy likes kissing ladies" where the phrase is the object of a larger verb phrase with "likes" or "Kissing ladies is great" where the phrase is the subject of the sentence.

The THIRD way is to understand "kissing" as an adjective. I don't remember the technical term for this. But in this "ladies" is the core of the phrase and "kissing" describes them. E.g. "Stacy saw some kissing ladies" or "Kissing ladies are great."

(cont.)