Is Target Poised to Grow?
Target (TGT) isn’t shying away from making upfront investments to accelerate its sales growth.
Target (TGT) is expanding its small-format store base and expects to open 28 new small-format stores this year.
Target’s price investment and higher costs associated with online orders are hurting its margins, which restricts the stock’s upside potential.
Target (TGT) announced that it’s expanding its offering through Google Express nationwide. Shoppers will also be able to place voice-based orders.
Active versus passive. Active or passive. The active-passive debate. Whatever the exact words, the theme dominates portfolio construction conversations.
The majority of analysts covering Walmart (WMT) stock continue to have a neutral stance on the company’s prospects. About 50.0% of them have rated the stock a “hold.”
Walmart’s (WMT) e-commerce sales rose 60.0% in fiscal 2Q18 compared to a rise of 63.0% in fiscal 1Q18.
Walmart (WMT) stock rose 4.5% on Tuesday, October 10, 2017, following the company’s upbeat outlook for fiscal 2019. Walmart expects both its top and bottom lines to improve in fiscal 2019.
Through its recently announced Mobile Express Returns service, Walmart is reducing the hassles of returns and refunds by fast-tracking the process and leveraging its strong stores base.
About 66.0% of the 29 analysts providing ratings for Costco stock maintained a “buy” recommendation, and 34.0% recommended a “hold.”
Costco’s (COST) increased price investments to drive shoppers to its stores and fend off growing competition in the grocery space adversely impacted its margins in fiscal 4Q17.
Costco’s (COST) fiscal 4Q17 total sales of $42.3 billion exceeded Wall Street’s estimate and rose 15.7% YoY, reflecting growth in average transactions and shopping frequency.
Costco (COST) reported better-than-expected bottom line results on October 5, 2017. The company’s earnings of $2.08 per share surpassed analysts’ estimate of $2.02.
Costco Wholesale (COST) posted strong fiscal 4Q17 results on Thursday, October 5, 2017. As expected, it exceeded analysts’ estimates for both sales and earnings.
On October 3, Target (TGT) stock traded at a forward price-to-earnings multiple of 13.2x, which is significantly below the S&P 500 Index’s (SPX-INDEX) forward PE of 18.2x.
Analysts issue a score of 3.0 on Target (TGT) stock on a scale of 1.0 to 5.0. A score of 1.0 reflects a “strong buy” while a score of 5.0 implies a “strong sell.”
Target has returned ~$5.0 billion to its shareholders during the last fiscal year in the form of share buybacks ($3.7 billion) and dividends ($1.3 billion).
Following its strong fiscal 1H17 results, Target’s management lifted its fiscal 2017 adjusted outlook during the fiscal 2Q17 conference call.
During fiscal 2Q17, Target’s gross margin contracted 40 basis points. Its EBIT margin decreased 90 basis points on a year-over-year basis.
Target recently entered into a partnership with Magnolia to launch its new home and style brand, Hearth & Hand.