TGT Reverse LongThere is over 22 million bids this week before earnings that shows a long biased for earnings. Looking to return to highs or until a big seller steps in.
TGT trade ideas
Target’s Q2 Triumph: Earnings Beat, Surging Stock, & OutlookKey Takeaways:
- Target (TGT) shares surged over 13% after a strong Q2 earnings report.
- The company’s revenue and net income outperformed expectations, driven by increased store traffic and digital sales.
- Target raised its full-year EPS guidance, reflecting confidence in sustained growth.
A Strong Quarter Amidst Challenges
Target Corporation ( NYSE:TGT ) has delivered an impressive performance in its second quarter of fiscal 2024, surprising analysts and investors alike with stronger-than-expected earnings and a positive outlook for the remainder of the year. The retailer’s stock soared over 13% in pre-market trading on Wednesday, signaling renewed investor confidence in the company’s growth strategy.
Target ( NYSE:TGT ) reported second-quarter revenue of $25.42 billion, a 2.6% year-over-year increase, surpassing Wall Street’s expectations. Even more noteworthy was the 40% jump in net income, which reached $1.19 billion, a significant improvement from the previous year’s quarter. This robust financial performance is a testament to Target’s successful cost-cutting measures and strategic investments in key growth areas.
Driving Growth: In-Store Traffic and Digital Sales
One of the most encouraging signs from Target’s Q2 report was the return to growth in comparable store sales. After experiencing a year-over-year decline in the first quarter, comparable store sales rebounded with a 2% increase. This growth was fueled by a 3% rise in in-store traffic and an impressive 8.7% surge in digital sales.
Target’s ability to drive both physical and online traffic highlights the effectiveness of its omnichannel strategy. The company’s same-day services, including curbside pickup and same-day shipping, were particularly successful, contributing to double-digit growth in these areas. Additionally, discretionary sales trends showed meaningful improvement, with categories like apparel and beauty leading the charge.
Raising the Bar: Upgraded Profit Outlook
Buoyed by its strong second-quarter performance, Target ( NYSE:TGT ) has lifted its full-year earnings per share (EPS) guidance. The company now expects full-year EPS to range between $9.00 and $9.70, up from the previous forecast of $8.60 to $9.60. This upward revision reflects Target’s confidence in its ability to navigate ongoing economic challenges while continuing to deliver value to its customers.
For the third quarter, Target ( NYSE:TGT ) projects flat to 2% growth in comparable sales, with EPS expected to range between $2.10 and $2.40. Despite a cautious outlook on sales growth, the company’s profitability remains strong, underscoring its resilience in a competitive retail landscape.
Value-Driven Strategy in a Competitive Market
During an interview on CNBC’s “Squawk Box,” Target CEO Brian Cornell addressed concerns about inflation and price gouging in the retail industry. Cornell emphasized that Target operates in a “penny business,” with thin profit margins that leave little room for price inflation. He highlighted Target’s commitment to providing value to customers, a strategy that has resonated well in an environment where consumers are increasingly budget-conscious.
In response to shoppers’ concerns about rising prices, Target has implemented strategic price cuts on thousands of everyday items, including essentials like diapers and peanut butter. This approach has successfully driven higher traffic to Target’s stores and website, with the company reporting a 3% increase in customer traffic during the quarter.
Cornell’s comments reflect Target’s broader strategy of appealing to consumers who are carefully managing their budgets. By focusing on value and competitive pricing, Target has positioned itself as a retailer of choice for price-sensitive shoppers, even as inflationary pressures persist.
Financial Strength and Strategic Investments
Target’s strong financial performance in the second quarter is also reflected in its operating results. The company’s operating income margin rate increased to 6.4%, up from 4.8% in the same period last year. This improvement was driven by higher gross margins, which benefited from cost improvements that more than offset higher promotional markdown rates.
In addition to its earnings performance, Target ( NYSE:TGT ) continued to deploy capital strategically. The company repurchased $155 million of its shares in the second quarter and paid $509 million in dividends, reflecting its commitment to returning value to shareholders. Target’s after-tax return on invested capital (ROIC) also improved, reaching 16.6% for the trailing twelve months, compared to 13.7% in the previous year.
Conclusion: A Retailer on the Rise
Target’s second-quarter results underscore its resilience and adaptability in a challenging retail environment. The company’s strong earnings, improved profit margins, and upgraded full-year guidance signal that Target is well-positioned to continue its growth trajectory. As it navigates the complexities of inflation and changing consumer behavior, Target’s focus on value, digital expansion, and strategic investments will be key drivers of its success in the coming quarters. Investors and market analysts will undoubtedly be watching closely as Target continues to execute on its growth strategy.
Target Potential Downtrend Line Breakout At $147.83 21.08.2024Apply risk management
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Disclaimer
TGT: Minor Wave 2 of Intermediate Wave 3 of Major Wave 5TGT is about to end Minor Wave 2 of Intermediate Wave 3 of Major Wave 5. Earnings will bring this stock down to between $123 and $109 for the end of minor wave 3 before a small bounce into minor wave 4.
TGT Target Corporation Options Ahead of EarningsIf you haven`t sold the speculative bubble:
Now analyzing the options chain and the chart patterns of TGT Target Corporation prior to the earnings report this week,
I would consider purchasing the 135usd strike price Puts with
an expiration date of 2025-4-17,
for a premium of approximately $9.80.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Target (TGT): Ready to Break Out of Its DowntrendWith Target, we have another major player in the US retail market, and we prefer its price structure over Walmart's. After completing Wave (3), Target experienced a significant sell-off, forming Wave (4). Currently, it appears that an inverse head and shoulders pattern is developing, which could signal a bullish reversal. The neckline looks particularly strong, and I will have a bullish outlook once this neckline is reclaimed.
There is a breakout gap following the completion of Wave (4), which might be revisited. However, for a well-formed head and shoulders pattern, we should see some momentum soon to create two shoulders at the same level. As long as the Wave (4) level at the Point of Control (POC) holds, we expect more upside, either after a slight dip into the breakout gap or immediately following the earnings report next week.
TGT D1 Long Aggressive Investment TradeAggressive Trade
- short impulse
+ biggest volume T1
+ support level
+ volumed 2Sp+
+ weak test
Monthly context:
"+ long impulse
+ SOS level
+ support level
+ close to 1/2 correction"
Will run 50% to 2R and the rest to Monthly T1
TGT shortNice head and shoulders break on TGT as the overall market is experiencing a correction. I would expect continued decline here, but may come up to the blue or red moving averages first.
Target To The Moon?NYSE:TGT – After consolidating the last week and ending with an explosive push to the upside the positioning is there to continue that run. Over 1,000 calls were added Friday to the 140 strike making it my key level to watch. I’m looking for longs If 135 holds because Target could explode to +GL levels at 155 & 160
TGT TargetMore of a defensive stock that have good upside potential into the holiday season and fall school season
Target Corporation - Trend AssessmentI do concentrate only on trend assessment so traders could make a sequence of profitable trades to exploit full trend capacity.
Arguments:
1. The price is consolidating above and near MA200 and longer ones.
2. Adjusted Supertrend (made by KivancOzbilgic) and adjusted to MA200 (SMA#5) with ATR Multiplier 1, 2 and 3.
3. Regarding Ichimoku Cloud: we have crossed Kumo red cloud and started consolidating above. We also should anticipate green cloud acting as support. Also note that Chikou Span is above price 200 days ago. Quite bullish.
3. ROC and Chaikin Money Flow: above zero line and confirming continuation.
4. BB Trend and BBT got into green zone.
5. Positive outlook on inflation and therefore FED's decision.
6. OBV: no indications of bearish divergence.
7. MACD and Squeeze Momentum Indicator: no indications of divergences.
It is just a trend assessment, so you do your own job constructing your trades around the trend if it is substantiated.
TGT Swing 1H Long Conservative TradeConservative Trade
+ long impulse
+ Daily 1/2 correction
+ T2 level
+ support level
+ 2Sp+
+ weak test
+ first bullish bar closed entry
Calculated affordable stop limit
1 to 2 R/R take profit
Daily context:
"- short impulse
+ biggest volume T1
+ support level
+ volumed 2Sp+
+ weak test
+ 1/2 correction"
Monthly context:
"+ long impulse
+ SOS level
+ support level
+ close to 1/2 correction"
TGT @NYSE Bought Market, Day
Profit Taker Sell Limit 150.02, GTC
Profit Taker Sell Stop 144.77 LMT 146.70, GTC
TGT 5M Long Aggressive DaytradeAggressive Trade
- short balance
- volumed expanding ICE
+ biggest volume Sp
+ weak test
- above first bullish bar close entry
Calculated affordable stop limit
1 to 2 R/R take profit
Hourly context:
"+ long impulse
+ 1/2 correction"
Daily context:
"- short impulse
+ biggest volume T1
+ support level
+ volumed 2Sp+
+ weak test"
Monthly context:
"+ long impulse
+ SOS level
+ support level
+ close to 1/2 correction"
If the day closed bullish I'll double up
TGT @NYSE Sell Limit 146.11, GTC
TGT @NYSE Sell Stop 141.69 LMT 143.16, GTC
TGT on supportTGT has seen significant drops after breaking out of a long downtrend. Right now it is on support, and should see a significant rise up from here.
Price Target: $ 181
TGTBought a starter position today. Price prints the right shoulder, bounced off the WMA40 (DMA200). A very clear pattern at this point.
Will TGT Reverse To The Upside?When analyzing TGT, there is a clear fresh weekly low on the RSI in October of 2023. That said, TGT is a prime target for a Elliot Wave Forecast. The big question when forecasting TGT, is if the wave two pullback, that started in April of 2024, is complete? Based on last week’s weekly candle structure, we see a high probability that a reversal off $138 zone support is in play, marking the bottom of wave two. The MACD is also indicating that weekly momentum to the downside took a hit last week. Combine the MACD with the chop index indicating that market participants want to see this ticker move, we believe there is enough evidence here to put out a solid preliminary forecast.
Target With Major PotentialWith a massive pullback making its way back to our levels we see overlapping monthly order block and seasonality shaping up to make this trade a banger (even if the AMEX:SPY decides to take a dump on us).
Another flush down, another buy?From my previous posts, I have shared that I have been doing some swing trading for equities that have a flush down after its earnings. As you may have see from NYSE:TGT , it shows a setup after a flush down in price hence I am entering it for a short trade. Again, I have no plan to hold NYSE:TGT for the long term hence this trade is made purely on very simple technical analysis.
Target Shares Slides 7.38% After Inflation Hurts EarningsTarget's first-quarter earnings and sales fell by 7.38% due to inflation, causing shares to fall in pre-market trading. Adjusted earnings per share were $2.03, down from $2.05 year on year and worse than analysts expected. Total revenue was $24.53 billion in the first quarter ended May 4, down 3.1% from $25.32 billion in the same period last year. First-quarter comparable sales were down 3.7%, marking the fourth straight quarter of decline. The slowdown in sales was primarily in discretionary categories like home decor and electronics but partially offset by a continued growth in beauty. Target's net income came in weaker, at $942 million compared to $950 million in the same quarter in 2023.
The number of transactions and average amount spent at Target stores ( NYSE:TGT ) and digital channels were both down 1.9% in the first quarter, compared to a traffic growth of 0.9% and a decline of 0.9% in average transaction amount in the comparable period last year. Target stock was down more than 9% to about $141 per share in Wednesday’s pre-market trading, following Wednesday’s report.
Target's ( NYSE:TGT ) revenue fell slightly last year for the first time in seven years following a weaker growth in visitor numbers that hit retail businesses across the United States. In March 2024, the big-box retailer re-introduced its free loyalty program, Target Circle, and launched a paid membership program that allows customers to get free same-day delivery on orders over $35 in as little as an hour at $99 a year. These initiatives were aimed to stimulate demand and rival existing paid membership programs by Amazon Prime and Walmart+.
Target shares ( NYSE:TGT ) slipped ahead of markets opening Wednesday after the retailer reported first-quarter results, with revenue meeting expectations but declining 3% year-over-year. Despite posting a slight earnings beat for the quarter, Target's second-quarter and full-year profit guidance ranges were mostly below estimates. The company said it is still feeling the impact of shoppers lowering their discretionary spending, but added that "discretionary sales trends continued to improve" from previous quarters.
$TGTNot financial advice.
NYSE:TGT on a downtrend channel. four attempts trying to fill the gap above in the $190"s and it fail to do so, also another gap below around $112 bulls need to step in if they want to flip the scenario.
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5/21/24 - $tgt - leaning long biased into tmr AM print5/21/24 - vrockstar - NYSE:TGT - tough setup, unclear if i'll participate on tmr's AM print. on one hand, the trends look incrementally better than NYSE:WMT which surprised (as the retailer has been absorbing even mid-higher end customers), multiple (adjusted for debt) is modestly above 20x PE which is reasonable for this type of scale (staple-ish) retailer, and 4+% fcf yield seems cheap in this neva-stop-wont-stop-print-4-eva-tape.
on the converse, the tgt demo reminds me of NASDAQ:SBUX + NASDAQ:LULU + $ulta... and that freaks me out from the long side given how these stocks have reacted. the counter point to this, however, is NYSE:TGT really is the lower end of all of these customers - so just like NYSE:WMT absorbed some trade down, it wouldn't be unreasonable for NYSE:TGT to benefit in the same vein.
i'm biased long into the print, but might need someone to tip my scales if u have an opinion leave a comment and let's sort this out
$TGT looking for a bounce after the gap fillTGT looking to go back north after the gap fill and now its breaking that downward trend line. Something to keep on your radar.
