The countdown is on for Target Corporation’s (TGT) first-quarter fiscal 2025 earnings release, set for May 21, before the market opens.The Zacks Consensus Estimate for first-quarter revenues stands at $24.45 billion, indicating a marginal decline of 0.3% from the same period last year. Meanwhile, earnings are projected at $1.68 per share, suggesting a drop of 17.2% from the year-ago quarter. The consensus estimate for earnings has been revised downward by six cents over the past seven days. Image Source: Za ...

Costco Wholesale Corporation (COST) and Dollar General Corporation (DG) stand out prominently in the Retail–Discount Stores industry. Costco boasts a substantial market capitalization of approximately $440 billion, operating on a membership-based warehouse model focused on selling bulk goods at discounted prices. The company manages a network of 905 warehouses globally, including 624 in the United States.In contrast, Dollar General holds a market capitalization of around $19.3 billion and operates a vast ne ...

Shares of Target Corporation (TGT) haven’t been able to catch a breath lately. Over the past three months, the stock has slid 25.1%, leaving investors wondering whether the big-box retailer is losing its edge or caught in a broader wave of retail weakness. From shifting consumer habits to rising competition and margin pressures, several forces appear to be weighing on sentiment.However, for long-term investors, steep declines like this often raise a question: Is the worst already priced in? With Target stil ...

Costco Wholesale Corporation (COST) and Target Corporation (TGT) are two of the most recognized names in the Retail–Discount Stores industry. Costco, with a massive market capitalization of about $433 billion, operates a membership-based warehouse model focused on selling bulk goods at discounted prices. Target, with a market capitalization of nearly $42 billion, operates as a general merchandise retailer, catering to a broad consumer base with a mix of essential goods, apparel, electronics and household it ...

Core Viewpoint - Target Corporation is expected to report a decline in fourth-quarter fiscal 2024 revenues and earnings, with a consensus estimate of $30.77 billion in revenues, reflecting a 3.6% year-over-year decrease, and earnings projected at $2.25 per share, indicating a 24.5% drop compared to the previous year [1][9]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $30.77 billion, down 3.6% from the same period last year [1]. - Earnings per share are projected at $2.25, suggesting a 24.5% decline year-over-year [1]. - The consensus estimate for earnings has been revised upward by a couple of cents in the past 30 days [1]. Earnings Surprise and Predictions - Target has a trailing four-quarter average earnings surprise of 5%, but in the last reported quarter, it missed the Zacks Consensus Estimate by 19.2% [3]. - The company has an Earnings ESP of +2.18% and a Zacks Rank of 3, indicating a likelihood of an earnings beat [4][5]. Sales and Traffic Growth - Target's total sales for November and December increased by 2.8% year-over-year, with comparable sales growth of 2% [7]. - The company experienced a nearly 3% increase in traffic, driven by strong performances in-store and online [7]. - Discretionary categories, particularly apparel and toys, saw significant sales increases during the holiday period [8]. Operational Challenges - Target anticipates comparable sales growth of approximately 1.5% for the fourth quarter, an improvement from earlier forecasts of flat sales [9]. - Adjusted earnings per share are expected to range from $1.85 to $2.45, down from $2.98 reported in the previous year [9]. - Rising operational expenses are likely to impact profitability, with SG&A expenses expected to deleverage by 60 basis points as a percentage of total revenues [10]. Stock Performance and Valuation - Target's stock price has declined by 8.4% in the past month, contrasting with a 0.3% rise in the Zacks Retail–Discount Stores industry [11]. - The stock trades at a forward 12-month price-to-earnings ratio of 13.23, below its five-year median of 16.32 and the industry average of 33.05, indicating attractive valuation [12]. Growth Strategy - Target's growth strategy includes enhancing digital shopping experiences, investing in stores, and expanding same-day services, positioning the company for long-term success [13][16]. - The company is adapting to evolving consumer preferences, which strengthens its growth potential [16]. Overall Outlook - While Target has capitalized on the holiday season with strong sales growth, profitability concerns due to rising operational costs remain [17]. - An earnings beat is likely, but near-term challenges may overshadow recent sales strength, making the stock a cautious consideration for investors [17].