Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 13 Sep, 24 | TGT | Buy | USD 151.13 | USD 162.0 | USD 170.0 | 34 days | 12.5% |
Data Powered by EOD Historical Data (“EODHD”).
Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies. It also provides dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, and food service; electronics, which includes video game hardware and software, toys, entertainment, sporting goods, and luggage; and furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise. In addition, the company sells merchandise through periodic design and creative partnerships, and shop-in-shop experience; and in-store amenities. Further, it sells its products through its stores; and digital channels, including Target.com. Target Corporation was incorporated in 1902 and is headquartered in Minneapolis, Minnesota.
Increased Profitability: Net Margin of 3.8% in Q1 FY25 vs Industry Median of 2.6%
Increased Shareholders' Wealth: ROE of 6.9% in Q1 FY25 vs Industry Median of 4.1%
Lower Liquidity: Current Ratio of 0.86x in Q1 FY25 vs Industry Median of 1.10x
Balance Sheet Risk: Debt-Equity of 1.16x in Q1 FY25 vs Industry Median of 0.59x
Inventory Management and Supply Chain Disruptions, Technology and Cybersecurity Risks, Pricing and Margin Pressure, Changing Consumer Preferences, E-commerce and Omnichannel Strategy.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 151.13 | 140.0 | 162.0 | 170.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
TGT's stock price has found a vital level of support and is starting to exhibit signs of upward momentum, potentially indicating a short-term uptrend. The 14-day Relative Strength Index (RSI) is shifting above its midpoint, which may signal a rebound in the stock's price. Furthermore, the stock's recovery above its 21-day simple moving average provides additional support for an optimistic outlook. Additionally, the stock's relative strength compared to its peers and industry benchmarks suggests that it may be poised for further gains.
As per the above-mentioned technical indicators analysis, a ‘Buy’ rating has been given to Target Corporation (NYSE: TGT) at the closing market price of USD 151.13 as of 13 September 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Defensive Industry: Discount Stores
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TGT Target Corporation |
0.63 0.48% | 131.33 | 17.94 | 15.22 | 0.59 | 5.05 | 0.75 | 10.24 |
| WMT Walmart Inc |
0.34 0.36% | 93.89 | 26.02 | 21.79 | 0.65 | 5.21 | 0.74 | 12.61 |
| COST Costco Wholesale Corp |
-4.7499 0.49% | 959.99 | 52.91 | 46.08 | 1.30 | 15.62 | 1.30 | 28.32 |
| WMMVY Wal Mart de Mexico SAB de CV ADR |
-0.2 0.70% | 28.44 | 24.25 | 21.46 | 0.08 | 6.62 | 0.08 | 0.77 |
| WMMVF Wal Mart de Mexico SAB de CV |
- -% | 2.80 | 24.35 | 21.88 | 0.08 | 6.75 | 0.08 | 0.77 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a medium to longer term duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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