Summary:
• Target Corporation (NYSE:TGT) soared by 14% on Wednesday, after the company posted earnings that beat Wall Street expectations.
• Based on its market cycles, we believe TGT has more room to run as it approaches resistance.
The company reported earnings per share of $1.36 and total revenue of $18.7 billion, compared to analyst estimates of $1.19 and $18.4 billion. Looking forward, management raised its earnings estimate to $6.25 - $6.45, compared to the $6.18 consensus.
CEO Brian Cornell said that, “Our third-quarter results are further proof of the durability of our strategy, as we're seeing industry-leading strength across multiple metrics, from the top line to the bottom line.”
Our approach to stock analysis uses market cycles to project price action. TGT has been in a steady uptrend with cycle after cycle seeing higher peaks and higher lows. It is still in the rising phase of its current cycle. Our target is $134.
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