Target earnings: Private labels are working, but food is still a weak spot
Target Corp. is expected to report second-quarter earnings on Wednesday before the market opens. UBS highlights Target’s TGT, -2.58% private label initiatives as a “bright spot.” During its analyst day in February, executives said the company would introduce more than a dozen private label brands in the next three years. UBS notes that Cat & Jack, one of the company’s children’s’ brands, has been a “consistent double-digit comp contributor.”
Target says the brand surpassed $2 billion in sales, about a year after launching. “With four more exclusive brand introductions set for this fall, we believe Target should continue to see some tailwinds from private label,” analysts led by Michael Lasser wrote. “On the other hand, we think its food offering and in-stocks remain works in progress.”
How Target Corporation (TGT) Stock Earnings Can Win Over Investors
Target Corporation (NYSE:TGT) announces second-quarter earnings Wednesday before the markets open. If its latest guidance update in July is any indication, TGT stock is going to jump on the news. Target is expected to deliver positive same-store sales in the second quarter, a beacon of hope for a retailer that’s had four consecutive quarters of declining same-store sales heading into tomorrow’s earnings.
Cue the comeback? We’ll know more after its earnings and conference call. That said, I believe Target has to forget about Amazon.com, Inc. (NASDAQ:AMZN) and start playing to its strengths.
Target Corporation (TGT) Earnings Guidance Must Improve Soon
Embattled retail giant Target Corporation (NYSE:TGT) will report earnings Wednesday morning before the opening bell, and it comes at a crucial time for the company. Retail competition has been incredibly fierce as of late, with Amazon’s ever-growing e-commerce reach and push into brick-and-mortar with its Whole Foods acquisition. Meanwhile, Walmart’s e-commerce business is surging, and Target is caught in no man’s land in between.
On average, Wall Street analysts expect the company to post EPS of $1.20 on revenues of $16.26 billion, compared with $1.23 per share on $16.18 billion in sales in the year-ago period.
Target actually pre-announced its preliminary Q2 results back on July 13, noting that as a result of improved traffic and sales trends through the first two months of the quarter, that it expected to report EPS above the high end of its prior guidance range. It also expects a modest increase in same store sales, as opposed to the small decline originally forecast.
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On the Tape Today | 8-16-17
COH-Coach This is Not Order Flow... The most common question I get from coaching students is about order flow. Which is good because it's the foundation of everything I do. This chart of COH shows the biggest problem and why some traders never become profitable.
One of the key concepts on order flow is commitments with real money. This chart shows one day. One large momentum move lower, but it is only one day. Yes the stock price is now below all key moving averages, that much is obvious. But what was your outlook the day before? Order flow has deep roots. Real money was invested for a larger move. Keep this in mind when you lack conviction. Ask yourself..."How much money was committed to my idea?"
If you prefer the worded invested, that's ok. How much did institutions invest in this stock? "How long has it been happening? One day is not a commitment. Burn this chart in your memory.
Stock Market Sector Performance
Stocks to Trade | 8-16-17 Wednesday Edition
Bullish Momentum: WYNN, HTZ
Bearish Momentum: dks, aap, coh, rh, sig, low, lb, rost, hd, fnsr, trgp, aaoi, atus
Bullish Order Flow: SNI, GRUB, TTWO, BA, VNTV, AAPL, ALXN, FB, CCI, UNH, BABA, CC, MA, ADBE
Bearish Order Flow: dks, slca, myl, mnk, pxd, hp, ual, cah, apa, lb, fnsr, hal, ibm, trgp, slb, apc
Double Normal Volume: DKS, COH, AAP, HD, CTRP, ROST, WYNN
Inside Days: jd, vz, dis, ebay, jnj, atvi, cat, mdt, unp, aa, ea, hog
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