Target Stock Is Near 52-Week Lows Again — Will Q3 Earnings Change Anything?
Target Corporation (NYSE:TGT) shares are trading higher Tuesday ahead of third-quarter earnings later this week. Here’s what you need to know before the report.
- TGT is showing downward pressure. See the trading setup here.
What To Know: Target is due to report third-quarter financial results before the market open on Wednesday. The retailer is expected to report earnings of $1.72 per share on revenue of $25.34 billion for the quarter. In the prior quarter, the company posted earnings of $2.05 per share, topping the consensus estimate of $2.03, and revenue of $25.21 billion, beating expectations of $24.93 billion.
Target's track record on earnings and revenue beats has been mixed in recent quarters.
Analyst Changes: Ahead of the earnings report, multiple analysts provided updates.
- Telsey Advisory Group analyst Joseph Feldman maintained a Market Perform rating on Target and a $110 price target.
- JPMorgan analyst Christopher Horvers maintained a Neutral rating on Target and lowered the price target from $117 to $100.
The consensus price target for Target is $107.93, with the highest price target at $150.00 and the lowest price target at $80.00, according to Benzinga data.
TGT Analysis: Target stock is trading near its 52-week low of $85.36, reflecting a challenging year with a year-to-date performance of -35.1%. This significant decline highlights the pressures the company has faced in a competitive retail environment, particularly against larger players like Walmart and Amazon.
Currently, Target is trading approximately 1.5% below its 50-day moving average of $90.44 and about 11.4% below its 200-day moving average of $100.47. The stock’s relative strength index (RSI) stands at 41.34, indicating a neutral sentiment among investors, suggesting that the stock may be neither overbought nor oversold at this time.
Key support is identified at $88.48, which aligns with the previous close, while resistance is noted at $92.61. A breach above this resistance could signal a potential reversal, while a drop below the support level may indicate further downside risk, particularly as the stock hovers near its 52-week low.
In the broader context, Target’s market capitalization of $40.21 billion positions it as a mid-sized player in the retail sector, significantly smaller than its competitors like Walmart and Costco. This size differential may impact its ability to compete on price and scale, particularly in a challenging economic landscape.
Given the current technical setup, the proximity to key support levels suggests that traders should watch for a decisive move either way. A failure to hold above $88.48 could lead to further downside, while a rally past $92.61 could provide a much-needed boost in sentiment and potentially signal a recovery phase for the stock.
Related Link: Barrick Pops After Elliot’s Surprise Move — Here’s What Investors Should Know
TGT Price Action: At the time of writing, Target shares are trading 0.72% higher at $89.16, according to data from Benzinga Pro.
Image: Shutterstock.com