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Thursday's Market Minute: Right On Target

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Thursday's Market Minute: Right On Target

Cue Alanis Morissette: isn’t it ironic that the company with possibly the most to lose at the hands of Amazon and the e-commerce wave saw its biggest ever one-day gain in shares yesterday?

After reporting earnings before market open Wednesday, Target shares closed on the day up 20.4%. The company reported strong earnings, sure: it beat on both the top and bottom line, posted year-over-year comparable sales of 3.4% that continued to show strength in digital sales, and boosted its full-year guidance. But where was the impetus that drove the historic move higher?

Maybe it’s the company’s dogged persistence to come out on top of the Amazon Wars. Amazon.com, Inc. (NASDAQ: AMZN) gets Whole Foods, Target Corporation (NYSE: TGT) launches a new grocery brand and expands same-day shipping options through Shipt. In fact, those same-day fulfillment services accounted for nearly 1.5% of overall comp sales growth. It’s clear that changes the company has been making over the past year are paying off. Target shares are likely to settle a bit after such a move, but analyst actions rolling in this morning reiterate faith in future moves to the upside.

Retail earnings still to come this week are Dick’s Sporting Goods Inc (NYSE: DKS), Ross Stores, Inc. (NASDAQ: ROST), and the Gap Inc. (NYSE: GPS).

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Posted-In: Dick's Sporting Goods Inc Ross TD AmeritradeEarnings News Retail Sales Markets General Best of Benzinga