Target (TGT) earnings: revenue growth accelerating or not?

3:15 pm ET, 21 Aug 2018

Target Corporation (TGT) shares are trading at 83.27.  The company is scheduled to announce its second-quarter results on August 22 before the opening bell.  What's driving TGT stock price? What's TGT stock price forecast?

Analysts are keeping an eye peeled for market share gains after strong Walmart results last week.  

Target is an iconic brand that's under threat from considerably larger and more powerful competitors Amazon and Walmart. The company differentiates itself through signature categories (apparel and wellness) that carry higher margins and faster growth rates than other areas of its business.  

The signature categories represent one-third of total revenue, but the company is coming under pressure as consumers shift more to digital retails.  When it comes to e-commerce, Target pales in comparison to both Walmart and Amazon: it generates $4 billion of sales annually through digital versus $23+ billion for Walmart and $60+ billion for Amazon.  Hence, investors are watching out for the company's progress on the e-commerce front.   

Analysts are also going to scrutinize grocery sales at Target.  Target is underperforming in grocery sales (roughly 15% of its total revenue), which explains the gap in revenue per square foot between Target at $300, Walmart at $430, and Costco at $1,100.

What is the sentiment towards the TGT stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is neutral. 

Over the last month, Target Corporation (TGT) returned +8.04%. 

Target Corporation (TGT) short share of float is 5.71%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Target Corporation (TGT) average analyst price target ($76.49) is -8.31% below its current price ($83.42).

For the latest price and information on Target Corporation, please visit Finstead and search for "TGT price" or "TGT news".

Target Corporation (TGT) Stock Guide

Updated at: 4:52 pm ET, 18 Sep 2020

Before we start: if you're looking for TGT stock price, you can quickly find it out by visiting Finny and typing "TGT quote". If you're looking for a quick scoop on TGT stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "TGT". You'll get all this info in one place. Or you can just type "TGT news" to get the latest stock news.

Looking to buy or sell Target Corporation (TGT)? Interested in getting the full scoop on TGT, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this TGT stock guide, we'll address key questions about TGT, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are TGT earnings?
2. What is TGT dividend?
3. What is TGT dividend yield?
4. What is TGT stock forecast (i.e., prediction)?
5. TGT buy or sell? What is TGT Finny Score?
6. What are the reasons to buy TGT? Why should I buy TGT stock?
7. What are the reasons to sell TGT? Why should I sell TGT stock?
8. What are TGT key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are TGT earnings?

TGT trailing 12-month earnings per share (EPS) is $6.92.

2. What is TGT dividend?

TGT forward dividend is $2.72.

3. What is TGT dividend yield?

TGT forward dividend yield is 1.8%.

Analyst Predictions

4. What is TGT stock forecast (i.e., prediction)?

Based on TGT analyst price targets, TGT stock forecast is $160.25 (for a year from now). That means the average analyst price target for TGT stock is $160.25. The prediction is based on 26 analyst estimates.

The low price target for TGT is $83.27, while the high price target is $180.00.

TGT analyst rating is Hold.

Analysis

5. TGT buy or sell? What is TGT Finny Score?

#{finnyScore:55}Our quantitative analysis shows 6 reasons to buy and 5 reasons to sell TGT, resulting in Finny Score of 55.

6. What are the reasons to buy TGT? Why should I buy TGT stock?

Here are the reasons to buy TGT stock:

  • Target is opening small stores in urban locations, which could drive incremental foot traffic to its stores.
  • Cost savings of $2 billion have exceeded management’s expectations, and the firm sees further runway ahead, which could provide the fuel to reinvest to bolster in-store traffic trends.
  • The company is working to drive REDcard penetration higher (currently at 24%), which would benefit comparable stores sales as these loyal customers tend to spend more than non-members.
  • TGT quarterly revenue growth was 24.70%, higher than the industry and sector average revenue growth (3.29% and 1.12%, respectively). See TGT revenue growth chart.
  • TGT profitability is improving. The YoY profit margin change was 0.14 percentage points. See TGT profitability chart.
  • TGT forward dividend yield is 1.80%, higher than the industry (0.87%) and sector (0.62%) forward dividend yields. See TGT forward dividend chart.
  • TGT forward P/E ratio is 19.63, which is low compared to its industry peers’ P/E ratios. See TGT forward P/E ratio chart.
  • TGT PEG ratio (P/E adjusted for growth) is 2.97, which is low compared to its industry peers’ PEG ratios. See TGT PEG chart.
  • TGT cash to debt ratio is 0.44, higher than the average industry (0.20) and sector (0.11) cash to debt ratio. See TGT cash to debt chart.

7. What are the reasons to sell TGT? Why should I sell TGT stock?

Let's look at the reasons to sell TGT stock (i.e., the bear case):

  • Target will need to invest heavily into its omnichannel presence to effectively compete against Amazon and other rivals, which we expect will constrain margins by 100-200 basis points relative to its historical 7% levels.
  • Target does not have a large loss-leader item like grocery or fuel to drive traffic, and we don’t foresee this changing.
  • Target faces low switching costs as the company hasn’t been able to differentiate itself from other retail outlets, failing to lead on price or assortment.
  • TGT stock price ($148.82) is close to the 52-week high ($155.86). Perhaps now is a good time to sell? See TGT price chart.
  • TGT Price/Book ratio is 5.99, which is high compared to its industry peers’ P/B ratios. See TGT forward Price/Book ratio chart.
  • TGT Price/Sales ratio is 0.89, which is high compared to its industry peers’ P/S ratios. See TGT forward Price/Sales ratio chart.
  • TGT short interest (days to cover the shorts) ratio is 2.79. The stock garners more short interest than the average industry, sector or S&P 500 stock. See TGT short interest ratio chart.
  • TGT Enterprise Value/Revenue multiple is 1.01, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See TGT Enterprise Value/Revenue chart.

Key Stats

8. What are TGT key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for TGT:

Metrics TGT
Price $154.43
Average Price Target / Upside $160.25 / 3.77%
Average Analyst Rating Hold
Forward Dividend Yield 1.80%
Industry Discount Stores
Sector Consumer Defensive
Number of Employees 360,000
Market Cap $75.37B
Forward P/E Ratio 19.63
Price/Book Ratio 0.89
Revenue (TTM) $84.65B
YoY Quarterly Revenue Growth 24.70%
Profit Margin 4.16%

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