Target's Earnings: A Preview

Target TGT will release its quarterly earnings report on Wednesday, 2024-11-20. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Target to report an earnings per share (EPS) of $2.30.

Anticipation surrounds Target's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.38, leading to a 1.53% drop in the share price on the subsequent day.

Tracking Target's Stock Performance

Shares of Target were trading at $156.56 as of November 18. Over the last 52-week period, shares are up 19.97%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Target

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Target.

The consensus rating for Target is Neutral, based on 19 analyst ratings. With an average one-year price target of $178.89, there's a potential 14.26% upside.

Peer Ratings Overview

In this analysis, we delve into the analyst ratings and average 1-year price targets of Dollar Gen, Dollar Tree and BJ's Wholesale Club, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Dollar Gen, with an average 1-year price target of $104.4, indicating a potential 33.32% downside.
• As per analysts' assessments, Dollar Tree is favoring an Neutral trajectory, with an average 1-year price target of $85.39, suggesting a potential 45.46% downside.
• As per analysts' assessments, BJ's Wholesale Club is favoring an Buy trajectory, with an average 1-year price target of $90.0, suggesting a potential 42.51% downside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for Dollar Gen, Dollar Tree and BJ's Wholesale Club, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Target ranks at the top for revenue growth among its peers. In terms of gross profit, Target is also leading the group. However, Target's return on equity is slightly below the top performer in the comparison.

Unveiling the Story Behind Target

Target serves as the nation's seventh-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target's upscale and stylish image began to carry national merit in the 1990s-a decade in which the brand saw its top line grow threefold to almost $30 billion-and has since cemented itself as a leading US retailer. Today, Target operates over 1,950 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm's vast physical footprint is typically concentrated in urban and suburban markets as the firm seeks to attract a more affluent consumer base.

Target's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Target's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 2.74%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Target's net margin excels beyond industry benchmarks, reaching 4.68%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Target's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.43% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Target's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.15% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 1.3, Target adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Target visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.