Target
Target Corp. (NYSE: TGT) stock has tumbled by about 34% since mid-May, when the company warned that inventory overhang would weigh on second-quarter results. The stock plunged 40% on the report. Shares have staged something of a comeback since dropping to a 52-week low in mid-June, largely due to less concern about inflation and recession. There is still little evidence that Target has solved its inventory forecasting issues yet, and investors will want to hear what the company plans to do to get margins back up.
Of 31 analysts covering the company, 21 have a Buy or Strong Buy rating and 10 others rate the stock at Hold. At a share price of around $172.50, the upside potential based on a median price target of $185.00 is about 7.2%%. At the high price target of $231.00, the upside potential is nearly 40%.
The consensus second-quarter 2023 revenue estimate is $26.09 billion, up 3.7% sequentially and 3.7% higher year over year. Adjusted EPS are forecast at $0.71, down 67.4% sequentially and by 80.5% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.40, down 38%, on sales of $109.84 billion, up 3.6%.
Target stock trades at 20.5 times expected 2023 EPS, 14.2 times estimated 2024 earnings of $13.52 and 12.8 times estimated 2025 earnings of $13.44 per share. The stock’s 52-week range is $137.16 to $268.98. The company pays an annual dividend of $4.32 (yield of 2.5%). Total shareholder return for the past year was negative 33.1%.
TJX Companies
The TJX Companies Inc. (NYSE: TJX) operates around 3,000 retail stores worldwide under well-known names like T.J. Maxx, Marshall’s and HomeGoods. Over the past 12 months, the share price has declined by 8.5%. Since posting its 52-week high in early January, the stock is down about 14%. Earlier this month, analysts at Goldman Sachs initiated coverage of TJX with a rating of Neutral and a price target of $70, implying an upside of around 12% from the then-current price.
Of 24 analysts covering the company, 17 have a Buy or Strong Buy rating and the others rate the stock at Hold. At a share price of around $65.50, the upside potential based on a median price target of $73.00 is 11.5%. At the high price target of $95.00, the upside potential is 45%.
Second-quarter revenue is forecast to come in at $12.07 billion, down 16.3% sequentially and flat year over year. Adjusted EPS are pegged at $0.67, up 9.3% sequentially and by 4.7% year over year. For the 2023 fiscal year ending in January, analysts expect EPS of $3.16, up 10.7%, on sales of $51.27 billion, up 5.6%.
TJX’s stock trades at 20.7 times expected 2023 EPS, 18.2 times estimated 2024 earnings of $3.59 and 16.5 times estimated 2025 earnings of $3.97 per share. The stock’s 52-week range is $53.69 to $77.35. The company pays an annual dividend of $1.18 (yield of 1.8%). Total shareholder return for the past 12 months was negative 6.9%.
Originally posted at 24/7 Wall St.
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