Target Has Been Ripping Ahead Of Its Next Earnings Report

Target Corporation TGT is due to report its Q1 earnings report before Wednesday's opening bell, and if recent activity in the stock is any indication, Wall Street is leaning towards the company exceeding expectations. 

Shares of Target are up 11 percent in the last 10 trading days, and the stock has gained back nearly all its losses from the February sell-off. 

According to market forecasting software VantagePoint, the stock's recent uptrend can be pinpointed directly to May 11. On that day, VantagePoint's predictive moving average for Target—the blue line in the chart below—crossed above the stock's simple, 10-day moving average (the black line). 

That crossover and the subsequent divergence of the two moving averages as seen on the chart shows that further upside in the stock can be expected. The shift in the red-green bar at the bottom, a neural index that predicts strength or weakness over the next 24 hours, has shifted to green, confirming this trend is in place. 

Of course, technicals can sometimes take a back seat when fundamental news is in play (such as we're getting Wednesday with the earnings report), but the clear uptrend is showing no signs of slowing down as of this writing. 

Target is expected to report Q1 earnings per share of $1.38, which would be a $0.17 year-over-year increase, on revenues of $22.766 billion, a $6.7 billion year-over-year increase. A better-than-expected report would likely lead to continued upside, and the recent strength suggests that even if the numbers were to come in lower than Wall Street's estimates, the stock may not necessarily sell-off right away. 

VantagePoint is a content partner of Benzinga

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Posted In: EarningsLong IdeasNewsPreviewsMarketsTrading IdeasGeneralTargetvantagepoint
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