NEW YORK (TheStreet) -- Target (TGT) - Get Report shares are advancing 0.96% to $73.86 in pre-market trading on Friday after the retailer said it's seeing a strong start to its Black Friday weekend in stores and online.
Even though initial results were not reported, CEO Brian Cornell noted, "Target got a head start going into Black Friday with the record-breaking launch of Adele's new album and our '10 Days of Deals' promotion."
Target's 10 Days of Deals promotion started Sunday Nov. 22 and will continue through Tuesday Dec. 1.
So far, Black Friday top sellers include Apple Watch and Apple iPads, Beats Solo 2 headphones, FitBit Charge HR and the Philips Sonicare 2 electric toothbrush.
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 multiple 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 increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 56.4% when compared to the same quarter one year prior, rising from $351.00 million to $549.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Multiline Retail industry and the overall market, TARGET CORP's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has significantly increased by 81.15% to $971.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 66.36%.
- You can view the full analysis from the report here: TGT