The average EPS estimate among analysts for TGT is 78 cents, which is slightly below last year's 82 cents. Anything above 78 cents should help move TGT's stock price to the upside. Analysts' average estimate concerning quarterly revenue is $16.93 billion, slightly ahead of last year's $16.40 billion.
It will be very interesting to see if the wallop felt by super-storm Sandy will impact these numbers positively or negatively. If either company misses, they can always blame Sandy, the elections, or even the price of gasoline, which, thanks to Sandy, is down significantly in the past two weeks.
Here's a 1-year look at how the stock prices of WMT and TGT have performed. Notice that WMT has corrected a little more than 8% from its 52-week high, while TGT has only corrected around 5%. When you factor in how much WMT has gone up in share price since early May, when WMT and TGT were trading at around the same price, you'd have to call WMT the total-return performance winner so far.
So in which of these two shining stars in the "big box retailing" constellation should we be investing? The simple answer from my perspective is "both." They are both "best in breed", yet one "pony" just happens to be much bigger than the other.