Is Target a Good Investment After the Stock Crashed on Earnings Miss?
Disclaimer: this is not financial advice. This is my opinion on what to make of another company (Target) missing earnings.
Is Target a Good Investment After Earnings Miss?
Target Corporation ($TGT) fell more than 13% after its latest earnings miss.
The shopping giant’s operating profit came in at 3.9%, missing estimates for 5.35%.
Another concerning metric mentioned on the earnings call was that inventory shrinkage has reduced Target’s gross profit margin by a staggering $400 million so far in 2022.
Ouch.
The Great Recession has been here despite politicians struggling to say the ‘R’ word.
The adjusted earnings per share (EPS) came in at $1.54, shy of the estimated $2.17.
Still, Target has good market share among the ‘cheaper retail’ section. Will quarter 4 be any better?
It’s unlikely to improve much, though any positives to come away in their 4Q financials will be good for investors.
Still, this looks like a decent entry opportunity for investors willing to play both the long and short game.
For traders, this price point will likely rally on some news (geopolitical OR company related) and for long-term investors, the stock last traded below $139 per share in July of 2020.
Is that a long enough sample size in these market conditions?
Personally I’m not enthusiastically making any investments. Though it’s an intriguing name to keep an eye on with a loyal-brand following.
As mentioned in previous articles, it’s hard to imagine that things don’t get even worse, before getting better.
