Target (TGT) Flagged As Today's Pre-Market Laggard

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.

Trade-Ideas LLC identified Target ( TGT) as a pre-market laggard 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 $288.4 million.
  • TGT traded 27,320 shares today in the pre-market hours as of 9:25 AM.
  • TGT is down 2% today from yesterday's close.

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More details on TGT:

Target Corporation operates as a general merchandise retailer in the United States and Canada. The stock currently has a dividend yield of 2.6%. TGT has a PE ratio of 21. Currently there are 7 analysts that rate Target a buy, 2 analysts rate it a sell, and 10 rate it a hold.

The average volume for Target has been 4.6 million shares per day over the past 30 days. Target has a market cap of $51.5 billion and is part of the services sector and retail industry. The stock has a beta of 0.77 and a short float of 3.2% with 4.23 days to cover. Shares are up 6.2% year-to-date as of the close of trading on Tuesday.

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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 solid stock price performance, impressive record of earnings per share growth, revenue growth, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 83.95% and other important driving factors, this stock has surged by 37.81% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • TARGET CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, TARGET CORP increased its bottom line by earning $3.84 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $3.84).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has increased to $2,389.00 million or 35.20% when compared to the same quarter last year. In addition, TARGET CORP has also modestly surpassed the industry average cash flow growth rate of 26.02%.
  • 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 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.

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