Minneapolis-based Target Corporation (TGT) offers a wide range of owned and premium branded goods, including household essentials, electronics, toys, apparel, food, pet supplies, jewelry, accessories, shoes, beauty and personal care products, cleaning and paper products, automotive items, and home furnishings. Its market cap currently stands at $68.9 billion. TGT is scheduled to release its fiscal 2024 Q2 earnings results before the market opens on Wednesday, Aug. 21.
Ahead of the event, analysts expect Target to report a profit of $2.17 per share, up 20.6% from $1.80 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one other occasion.
Target’s EPS of $2.03 for the last reported quarter slightly missed the consensus estimate due to macroeconomic headwinds and a decline in discretionary item sales.
Looking ahead, analysts expect Target to report an EPS of $9.31 in fiscal 2025, up 4.1% from $8.94 in fiscal year 2024. Moreover, its fiscal 2026 EPS is projected to rise 12.8% annually to $10.50.
Over the past 52 weeks, TGT’s stock has surged by 8.8%, trailing behind the broader S&P 500 Index's ($SPX) 19.2% gains but surpassing the S&P 500 Cons Staples Sector SPDR’s (XLP) 3.2% returns during the same period.
Over the past years, Target has transitioned from a traditional brick-and-mortar retailer to an omnichannel entity by modernizing its supply chain to compete with e-commerce players. While macroeconomic headwinds have weighed on TGT’s price performance in the broader market, the anticipation of near-term interest rate cuts is encouraging investors to stay hopeful. Expectations for the Federal Reserve to begin its rate-cutting cycle in September were reinforced after Fed Chair Jerome Powell indicated to Congress that the U.S. economy is no longer overheated, strengthening the case for easing monetary policy.
However, on May 22, Target shares fell 8% following the release of its Q1 earnings results. Although the company missed its bottom-line expectations, it reported revenue of $24.53 billion, slightly above Wall Street estimates of $24.52 billion. For the current quarter ending in July, Target projects its EPS to range between $1.95 and $2.35, with the midpoint falling below the consensus of $2.19. Additionally, Target anticipates full-year EPS to be between $8.60 and $9.60.
The current consensus opinion on Target stock is “Moderate Buy” overall. Out of 31 analysts covering the stock, 16 suggest a “Strong Buy,” three recommend a “Moderate Buy,” 11 advise a “Hold,” and the remaining one analyst advocates a “Strong Sell.”
Furthermore, the average analyst price target for TGT is $174.43, indicating a potential upside of 18.8% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
