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Strength Seen in Target (TGT): Can Its 6.1% Jump Turn into More Strength?
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Target (TGT - Free Report) shares soared 6.1% in the last trading session to close at $219.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.4% loss over the past four weeks.
Shares of Target got a boost following the company’s stellar performance in first-quarter fiscal 2021, wherein both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also grew year over year. Notably, comparable sales increased for the 16th successive quarter. The metric gained from strength in both store and the digital channel.
Target reported adjusted earnings of $3.69 per share that outshone the Zacks Consensus Estimate of $2.26, and rose sharply from $0.59 reported in the year-ago period. The company generated total revenues of $24,197 million that increased 23.4% from the year-ago period and outpaced the Zacks Consensus Estimate of $22,286 million.
Evidently, mass inoculation drive and the passing of a coronavirus relief package triggered spending across the board. Well, demand was not restricted to a few categories as was noticed when the coronavirus crisis gripped the economy. Management informed that the company gained more than $1 billion in market share during the quarter under review, on top of $1 billion in share gains a year ago.
Management envisions mid-to-high single digit growth in comparable sales during the second quarter of fiscal 2021. The company anticipates second-quarter operating margin rate to be well above second-quarter fiscal 2019 rate of 7.2% but is unlikely to be as high as last year’s exceptional rate of 10%.
Price and Consensus
This retailer is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of -26.3%. Revenues are expected to be $21.87 billion, down 4.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Target, the consensus EPS estimate for the quarter has been revised 3.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TGT going forward to see if this recent jump can turn into more strength down the road.
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Strength Seen in Target (TGT): Can Its 6.1% Jump Turn into More Strength?
Target (TGT - Free Report) shares soared 6.1% in the last trading session to close at $219.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.4% loss over the past four weeks.
Shares of Target got a boost following the company’s stellar performance in first-quarter fiscal 2021, wherein both the top and the bottom lines not only surpassed the Zacks Consensus Estimate but also grew year over year. Notably, comparable sales increased for the 16th successive quarter. The metric gained from strength in both store and the digital channel.
Target reported adjusted earnings of $3.69 per share that outshone the Zacks Consensus Estimate of $2.26, and rose sharply from $0.59 reported in the year-ago period. The company generated total revenues of $24,197 million that increased 23.4% from the year-ago period and outpaced the Zacks Consensus Estimate of $22,286 million.
Evidently, mass inoculation drive and the passing of a coronavirus relief package triggered spending across the board. Well, demand was not restricted to a few categories as was noticed when the coronavirus crisis gripped the economy. Management informed that the company gained more than $1 billion in market share during the quarter under review, on top of $1 billion in share gains a year ago.
Management envisions mid-to-high single digit growth in comparable sales during the second quarter of fiscal 2021. The company anticipates second-quarter operating margin rate to be well above second-quarter fiscal 2019 rate of 7.2% but is unlikely to be as high as last year’s exceptional rate of 10%.
Price and Consensus
This retailer is expected to post quarterly earnings of $2.49 per share in its upcoming report, which represents a year-over-year change of -26.3%. Revenues are expected to be $21.87 billion, down 4.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Target, the consensus EPS estimate for the quarter has been revised 3.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TGT going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>