Pre-Market Activity Shows Gains For Target (TGT)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Target ( TGT) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Target as such a stock due to the following factors:

  • TGT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $461.6 million.
  • TGT traded 12,986 shares today in the pre-market hours as of 7:41 AM.
  • TGT is up 2% today from yesterday's close.

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More details on TGT:

Target Corporation operates general merchandise stores in the United States. The stock currently has a dividend yield of 3.1%. TGT has a PE ratio of 15.1. Currently there are 5 analysts that rate Target a buy, 3 analysts rate it a sell, and 10 rate it a hold.

The average volume for Target has been 6.5 million shares per day over the past 30 days. Target has a market cap of $35.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.71 and a short float of 4.1% with 3.28 days to cover. Shares are down 11.3% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Target as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • TGT's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 1.9%. 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 0.92, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • TARGET CORP's earnings per share declined by 43.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TARGET CORP increased its bottom line by earning $4.53 versus $4.29 in the prior year. For the next year, the market is expecting a contraction of 30.0% in earnings ($3.17 versus $4.53).
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Multiline Retail industry and the overall market on the basis of return on equity, TARGET CORP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The gross profit margin for TARGET CORP is currently lower than what is desirable, coming in at 29.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.97% trails that of the industry average.

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