Target reported second-quarter earnings and sales - both of which surpassed analysts’ expectations.
The retail giant’s earnings per share for the quarter came in at $1.82 (from the year-ago quarter’s $1.47), beating the $1.62 expected by analysts polled by Refinitiv.
Revenue of $18.42 billion, too, exceeded analysts’ estimates of $18.34 billion.
Same-store sales grew +3.4%, compared to 2.9% growth expected by analysts.
Looking ahead, Target boosted its outlook on full-year earnings. It now expects to earn between $5.90 and $6.20 a share, compared to its previous forecast of per-share earnings of between $5.75 and $6.05. Analysts polled by FactSet were expecting full-year per-share earnings of $5.94 a share on sales of $78 billion.
While its physical stores showed a strong performance, Target (along with several traditional retailers) are apparently working on making shopping more convenient and attractive to consumers. They are heavily investing in their digital presence and trying to speed up shipping times.
TGT saw its Momentum Indicator move above the 0 level on March 25, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned positive. In of the 82 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for TGT just turned positive on March 28, 2024. Looking at past instances where TGT's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TGT advanced for three days, in of 330 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 257 cases where TGT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TGT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TGT broke above its upper Bollinger Band on March 28, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. TGT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.090) is normal, around the industry mean (10.913). P/E Ratio (19.822) is within average values for comparable stocks, (23.528). Projected Growth (PEG Ratio) (2.733) is also within normal values, averaging (3.484). Dividend Yield (0.025) settles around the average of (0.022) among similar stocks. P/S Ratio (0.764) is also within normal values, averaging (1.232).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 46, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a department and discount store
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