This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Investors Forgive Target Its Trespasses; What About Wal-Mart?

NEW YORK (TheStreet) -- If you saw the investor panic over the Target (TGT - Get Report) data breach last December as a chance to load up, your patience is being rewarded.

The retailer's stock jumped $3.50 Wednesday and is now changing hands at more than $60, after the company announced earnings of $520 million, or 81 cents per share, and revenue of $21.5 billion for its fiscal fourth quarter, ending in January.

That's just $3 short of where the stock was in mid-December, when the now notorious "Target data breach" was announced, and the stock's momentum could carry it over that mark fairly soon.

Investors had waited until Jan. 10 to start dumping Target shares, when the company announced that 70 million names, addresses and phone numbers may have been stolen. Earnings seem to have been a catalyst for investors to buy back in.

In reaction to the breach, Target offered fraud-protection monitoring and identity theft protection to its card holders and told analysts on its conference call it would accelerate its move to "chip and pin" cards that are more secure.

"Sales have started to recover," CEO Gregg Steinhafel told his conference call, and the "near-term financial impacts" won't slow the company's investments.

That seemed to be all some investors needed to hear. Twice as many analysts now rate Target a buy than a sell, with most calling it a hold.

The performance of Target stock, especially in the last month, stands in contrast with that of rival Wal-Mart (WMT - Get Report), which mainly went sideways after it blamed food stamp cuts and payroll taxes for lowered guidance despite beating analyst estimates and raising the dividend.

Investors seem to see the Target problems as temporary, and the problems at Wal-Mart as more permanent.

This despite the fact that Wal-Mart is well ahead of Target in moving toward smaller stores. Target just opened its first "test" TargetExpress in its home market of Minneapolis last month while Wal-Mart plans to add up to 300 small stores in the next year.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
TGT $77.72 -0.36%
WMT $82.58 -0.95%
AAPL $128.54 -0.63%
FB $80.90 1.63%
GOOG $573.37 -0.05%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs