Trade-Ideas: Target (TGT) Is Today's Post-Market Laggard Stock

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 post-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 $291.8 million.
  • TGT is down 4.9% today from today'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 2. 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 4.5 million shares per day over the past 30 days. Target has a market cap of $50.6 billion and is part of the services sector and retail industry. The stock has a beta of 0.95 and a short float of 2.7% with 4.42 days to cover. Shares are up 3.9% 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • TGT's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 2.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.90, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.83% over the past year, a rise that has exceeded that of the S&P 500 Index. 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 has improved earnings per share by 13.5% 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 $3.83 versus $3.07 in the prior year. This year, the market expects an improvement in earnings ($4.63 versus $3.83).
  • 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 51.9% when compared to the same quarter one year prior, rising from $418.00 million to $635.00 million.

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