
More Squawk From Jim Cramer: Target (TGT) Stock ‘Down Justifiably’ After Earnings
NEW YORK (TheStreet) -- Despite reporting 2015 third quarter earnings in line with estimates and a revenue beat, Target (TGT) - Get Report stock is falling 4.04% to $69.96 this morning as its digital channel sales climbed just 20%. Last quarter, digital sales increased by 30%.
"Target stock is down justifiably because online sales should've been 30%," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning. "This was not the blowout number I was looking for."
Cramer added that Target's earnings are competing with yesterday'sTJX Cos. (TJX) quarterly results, which were "beautiful," and turnarounds at Home Depot (HD) and Wal-Mart (WMT), reported yesterday, and Lowe's (LOW) reported today.
Target stock is likely down more than it should be this morning, as the strong quarterly results at Home Depot and Lowe's exacerbate concern about the apparel industry, Cramer added.
"[Target] had the misfortune of reporting today, when we're looking at Lowe's and thinking that we can't be in anything that's in apparel," he said.
Although Target outperformed fellow retailersMacy's (M) and Nordstrom(JWN), which reported earnings last week, "people expect unbelievable things from Brian [Cornell]," Target's CEO, Cramer noted.
Cramer's Action Alerts PLUS charitable trust owns Target stock. "I sure wish we owned Home Depot," he said.
Separately, TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate TARGET CORP (TGT) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: TGT
data by
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.









