16 May

Is Target a ‘Buy’ ahead of Q1 Earnings?

WRITTEN BY Adrian Stevens

What to expect

Target (TGT) is expected to announce its fiscal 2019 first-quarter results on Wednesday, May 22. We expect Target to sustain its momentum in both sales and earnings. Target’s top line is likely to gain from continued improvement in comparable sales. Expansion of delivery options and merchandise offerings in combination with value pricing are expected to drive traffic, and in turn, its comparable sales in the first quarter. Moreover, store remodeling and the opening of small-format stores are expected to support sales growth.

The expected improvements in comparable sales and cost-saving initiatives are projected to support its margins. However, we expect Target’s gross and operating profit margins to stay low, reflecting higher digital fulfillment costs and an unfavorable mix.

Is Target a ‘Buy’ ahead of Q1 Earnings?

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Despite pressure on margins, we expect Target’s bottom line to mark high-single-digit growth in the first quarter. Benefits from sustained improvement in comparable sales and share repurchases are expected to drive Target’s first-quarter EPS.

Stock performance

Target stock is up 7.8% so far this year and underperformed the benchmark index. Margin worries and heightened competitive activity weighed on Target, which declined about 13% in the past one month.

In comparison, Walmart (WMT) and Costco (COST) have risen 7.7% and 19.2%, respectively, on a YTD basis as of May 14.

Latest articles

After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.

With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.

Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).

Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.

Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.

22 May

Cannabis Stocks Struggle to Find Direction


The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.