Target Takes Aim at Earnings Bullseye

Big box retailer Target Corporation reports earnings before the opening bell on Tuesday, March 6, with the stock above a “golden cross” since Oct. 19, when it closed at $60.43. Shares of Target are trading between my semiannual pivot of $72.94 and my monthly risky level for March of $76.70. The stock closed Friday, March 2, at $75.15, up 15.2% year to date and down 4.5% from its Jan. 23 high of $78.70. Target traded as low as $68.39 at its Feb. 6 correction low.

Analysts expect Target to report earnings per share of $1.39 to $1.40 before the opening bell on Tuesday. The stock had a negative reaction to its previous earnings report on Nov. 15, but this low of $54.04 proved to be a buying opportunity. One metric to focus on is growth in online sales versus sales in stores, which was just 4.3% in the pre-holiday quarter. For comparison, Walmart Inc. reported earnings on Feb. 20 and suffered a price gap lower. After the company missed earnings per share estimates, Walmart stock fell 17%, testing its 200-day simple moving average of $87.21 on March 2. (See also: Home Decor Wars: Walmart Takes on Target.)

Target reports earnings with a favorable P/E ratio of 15.72 and a positive dividend yield of 3.30%. …read more

Read more here: Target Takes Aim at Earnings Bullseye

Category: TGT, WMT

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