Send me real-time posts from this site at my email
Zacks

Why Target (TGT) Might Surprise This Earnings Season

Investors are always looking for stocks that are poised to beat at earnings season and Target Corporation TGT may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.

That is because Target is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for TGT in this report.

In fact, the Most Accurate Estimate for the current quarter is currently at $1.70 per share for TGT, compared to a broader Zacks Consensus Estimate of $1.61 per share. This suggests that analysts have very recently bumped up their estimates for TGT, giving the stock a Zacks Earnings ESP of +5.55% heading into earnings season.

Target Corporation Price and EPS Surprise

Target Corporation price-eps-surprise | Target Corporation Quote

Why is this Important?

A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).

Given that TGT has a Zacks Rank #2 (Buy) and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Clearly, recent earnings estimate revisions suggest that good things are ahead for Target, and that a beat might be in the cards for the upcoming report.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Target Corporation (TGT): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue