Target Stock Stages 4-Week Slide Before Earnings

Core Viewpoint - Target Corp is expected to report lower-than-expected earnings and revenue for the fourth quarter, despite an anticipated rise in comparable store sales [1] Financial Performance - Wall Street forecasts earnings of $2.24 per share and revenue of $30.83 billion for Target's fourth quarter, which is lower than both expectations and the same quarter last year [1] - Target's stock has experienced a significant decline, down 20% year-over-year and 8.1% year-to-date, following a 21.4% drop after earnings in November [2] Historical Context - Target has a generally optimistic earnings history, with the November drop being only the second post-earnings loss in the past two years, the first occurring in May 2024 [3] - The stock has averaged a 9.6% move in the last eight quarterly reports, with options pricing indicating an expected 11.8% swing for the upcoming report [3] Market Sentiment - There is a notable increase in put trading activity, with a 10-day put/call volume ratio of 1.34, indicating heightened pessimism among traders [4] - If Target's post-earnings performance is positive, the unwinding of this pessimism could provide upward momentum for the stock [4]