Target Might Be The Bullseye You Need (TGT)

Big box retailer Target (NYSE: TGT) is set to report earnings on Wednesday, August 18.

Analysts are calling for earnings per share of 92 cents on revenues of $15.62 billion. The company should start to see a benefit from back to school shopping, as the store supplies everything from pens, pencils, dorm wear clothing to electronics.

Investors may want to look at Target's shares after competitor Wal-mart (NYSE: WMT) reports its earnings tomorrow before the bell. Wal-Mart is the largest retailer in the world and should give a general idea of how Target performed this quarter as consumers continue to seek out the best value for their buck.

Target is seen as 'cheap chic', as consumers love its quality products and brand names at cheap prices. It is seen as a step up from Wal-Mart, as it caters to a higher end consumer.

Target has a relatively stable balance sheet, and has a strong return on equity (ROE), at 17.75%. This compares to Wal-Mart's ROE of 22.88%, but is higher than such competitors as Costco (NASDAQ: COST) and BJ's Wholesale Club Inc. (NYSE: BJ). Target also has a healthy dividend, yielding 1.6% which I believe management can grow higher.

Barron's also recently had a positive piece on Target, which you can read here.

Investors may want to look at adding the red bulls eye to their portfolios to shoot up any profits.

Disclosure: author is long TGT shares.

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