NEW YORK (TheStreet) -- Target Corp. (TGT) - Get Report stock is rising by 3.26% to $76.40 on heavy trading volume on Wednesday afternoon, after the company's digital sales increased by 34% year-over-year for the fiscal 2015 fourth quarter.
The retailer's investments in e-commerce, such as free-shipping, has helped the company compete with Amazon.com (AMZN), which has dominated the online field, TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUS charitable trust portfolio, and Jack Mohr, research director, wrote on Action Alerts PLUS.
Comparable store sales were up by 1.9% for the quarter ended January 30, beating estimates of a 1.4% increase. Digital sales contributed 1.3 percentage points to overall comparable store sales growth.
Additionally, shares of Target are also gaining due to the company's 2016 fiscal year earnings guidance of $5.20 to $5.40 per share. Wall Street was estimating for earnings of $5.16 per share for the year.
"[W]e believe this could reflect not only the health of the consumer but Target's ability to distinguish itself amid a sea of competition and take share," Cramer and Mohr added.
So far today, 11.71 million shares of Target have exchanged hands, compared with its average daily volume of 5.17 million shares.
(Target is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with afree trial.)
Separately, Target has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations.
You can view the full analysis from the report here: TGT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.