Target
Target Corp. (NYSE: TGT) posted its 52-week high on November 15 of last year, and shares closed Friday down more than 50% from that high. On Friday, the company announced a new store design that is both larger and more focused on its same-day delivery service and curbside pickup. Target stores currently fulfill more than 95% of the company’s digital orders, so using the store locations as fulfillment centers allows Target to keep transportation costs lower than online-only retailers like you-know-who.
Of 32 analysts covering the company, 22 have a Buy or Strong Buy rating and 10 others rate the shares a Hold. At a price of around $173.30 a share, the upside potential based on a median price target of $190.00 is about 9.6%. At the high price target of $223.00, the upside potential is 28.7%.
The consensus third-quarter 2023 revenue estimate is $26.4 billion, up 1.4% sequentially and by 2.9% year over year. Adjusted EPS are forecast at $2.18, up more than 450% sequentially and down 28.1% year over year. For the full year ending in January, analysts expect Target to report EPS of $8.04, down 40.7%, on sales of $109.67 billion, up 3.5%.
Target stock trades at 21.6 times expected 2023 EPS, 14.6 times estimated 2024 earnings of $11.90 and 13.0 times estimated 2025 earnings of $13.38 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 2.49%). Total shareholder return for the past year was negative 32.1%.
TJX Companies
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 risen by around 7.4%. Since posting its 52-week high in early January, the stock sank nearly 28% before recovering to close Friday at down by less than 1% for the year to date. Off-price retailers are expected to perform well as consumers look to increase the bang they get for their buck during the current macro environment.
Of 24 analysts covering the company, 18 have a Buy or Strong Buy rating and the others rate the shares at Hold. At a share price of around $76.90, the upside potential based on a median price target of $79.00 is 2.7%. At the high price target of $90.00, the upside potential is 21.8%.
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