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Bear of the Day: Target (TGT)

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Target ((TGT - Free Report) ) delivered Q3 earnings and sales misses last week and a cautious Q4 view. This resulted in a 22% drop in shares that are trying to recover this week off of new 52-week lows at $120.

Our Director of Research, Sheraz Mian, chose Target and Walmart for a special compare/contrast in a recent dive into retail earnings. You can find that analysis here...

Walmart & Target: A Closer Look at Retail Earnings

My objective today is to look at the analyst earnings revisions that have knocked Target into the cellar of the Zacks Rank.

In the past week, thirteen covering analysts have taken the fiscal 2025 EPS consensus (ends January) down 8%, from $9.55 to $8.78.

This drives the company's profit outlook to a -1.8% loss for the year. And the revenue picture also drops 1.2% negative for the fiscal year to $106 billion.

But that wasn't enough for the retail spreadsheet jockeys. They also were in pretty strong agreement that next year will miss the prior forecast profit bullseye too.

The EPS consensus for fiscal 2026 (begins February) dropped 10.6% from $10.57 to $9.45.

Could it be that one of the strongest winners of retail in competition with Walmart has seen its best days from peak trailing 12-month sales at $109 billion in 2023?

With flatlining sales and profits, it's possible. Be sure to dive into Sheraz's earnings autopsy to get the goods.


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