Target's first-quarter earnings easily beat Wall Street's estimates. It raised its full-year earnings guidance.
The retailer enjoys healthy pricing power, but the underlying demand may be weaker than it seems on the surface. Inventory appears to be moving back toward frothy levels, resetting the stage for discounting.
A back-and-forth week in the markets turned to the upside when Fed Chair Jerome Powell shared optimism during his speech at Jackson Hole. Target (TGT) led the charge in retail strength, while Eli Lilly's (LLY) weight-loss drugs showed promising results.
As the qualified default investment alternative (QDIA) in most 401(k) plans, target-date funds (TDFs) have become a critical “one-stop-shop” retirement savings and investment tool for participants during the long accumulation stage of their working lives. As participants move from accumulation to decumulation, their investment needs become less homogeneous with their unique personal circumstances.
Retailers may begin shuttering stores in high-crime areas, which could create retail deserts.
Second-quarter earnings reports for Ross Stores, TJX Companies (parent of TJ Maxx) and Target unveiled a mixed bag of results against a backdrop of economic uncertainty and ongoing supply chain disruptions. While the three retailers have carved out their respective niches, they face unique obstacles that are reshaping their strategies.
Worries had hit shares of Target Co. TGT as rising crime waves in some states where the brand has the most square footage, like California, created a headwind for future earnings. However, these fears seem to have been put to bed as the company released its second quarter 2024 earnings results, sending the stock higher by up to 14% in a single day on a positive reaction to the numbers.
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Target demonstrated the competitive advantages of its same-day services in its latest quarterly update to investors.
Target (NYSE: TGT) stock rose 10.3% on 21st August, as compared to a 0.4% increase in the S&P 500 index. While Target's single-day performance stood out, overall sentiment toward retailer stocks was buoyant as indicated by a sharp increase in stock price for some of Target's peers too, including TJX Companies (NYSE: TJX) which was up 6.1% and Ross Stores (NASDAQ: ROST) which gained 4.2%.
Over the past two years, retailers have had a tougher time getting inflation-battered shoppers to spend at their stores. But for the biggest chains, some analysts say, that's become less of a problem.
Target Corporation TGT shares are trading lower on Thursday.