Target (TGT) Offering Possible 40.85% Return Over the Next 8 Calendar Days

Target's most recent trend suggests a bullish bias. One trading opportunity on Target is a Bull Put Spread using a strike $130.00 short put and a strike $125.00 long put offers a potential 40.85% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $130.00 by expiration. The full premium credit of $1.45 would be kept by the premium seller. The risk of $3.55 would be incurred if the stock dropped below the $125.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Target is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Target is bullish.

The RSI indicator is at 74.49 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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LATEST NEWS for Target

Target (TGT) Dips More Than Broader Markets: What You Should Know
Tue, 11 Aug 2020 21:50:09 +0000
Target (TGT) closed at $131.72 in the latest trading session, marking a -0.92% move from the prior day.

Walmart vs Target: Which Retailer is the Better Buy?
Tue, 11 Aug 2020 09:25:24 +0000
E-commerce players, especially Amazon, have disrupted the retail space over the past few years and led to the bankruptcy of several brick-and-mortar retailers. However, Walmart and Target continue to grow and adapt to changing industry dynamics.The COVID-19 pandemic led to consumers piling up groceries and other essentials amid lockdowns. This stockpiling benefited the sales of certain categories of Walmart and Target. E-commerce sales of both companies witnessed a sharp spike in the fiscal first quarter. However, sales of certain discretionary items took a hit.Walmart and Target are set to announce their fiscal second-quarter results soon. Analysts expect strong e-commerce sales and some improvement in physical store sales due to easing of the lockdown restrictions.Using TipRanks’ Stock Comparison tool, we lined up the two alongside each other to analyze what the near-term holds for these big-box retailers. Walmart (WMT)Walmart has sustained its leadership position in a highly competitive retail landscape due to its continued focus on low prices and aggressive investments in e-commerce. The company’s cost control and productivity efforts have also helped in improving its performance.Walmart’s FQ1 2021 (Feb to April quarter) revenue increased 8.6% year-over-year to $134.6 billion. The company’s US comparable sales surged 10% thanks to pandemic-led demand for food and essentials. Towards the end of the quarter, the company also saw higher sales in categories like video games, toys and televisions as people were restricted to their homes.Indeed, the retail giant was already experiencing strong e-commerce growth. But the COVID-19 pandemic took the e-commerce sales to another level. The company’s first quarter US e-commerce sales surged 74%. Notably, focus on online grocery helped in boosting digital sales.However, costs to support increased workforce and additional benefits impacted the company’s first-quarter profitability. Walmart hired over 235,000 new associates in the US. The first-quarter gross margin was also hurt by a spike in sales of lower-margin categories.UBS analyst Michael Lasser believes that Walmart’s strong performance likely continued through the second quarter. He expects a 6% comparable sales growth in the second quarter, which is higher than the 5.5% consensus. The five-star analyst also feels that the food-at-home trend amid the coronavirus crisis would continue to benefit Walmart’s grocery sales.He explained, “WMT’s commitment to its EDLP [Every Day Low Price] strategy likely drove value for its customers, especially at a time when many competitors decreased promotions, thereby raising prices. Also, its SSS [Same Store Sales] likely benefited from robust digital sales (we model 55% digital sales growth at Walmart US) as more shoppers favored ordering online.” As a result, the analyst reiterated his Buy rating with a price target of $135 on August 4.Overall, 18 Buy ratings and 5 Holds assigned in the last three months add up to a bullish ‘Strong Buy’ analyst consensus for Walmart stock. With an average price target of $140.58, analysts see an upside of 6.6% over the coming 12-months. (See Walmart stock analysis on TipRanks) Target (TGT)Like its rival Walmart, Target also gained from the spike in the demand for groceries since the implementation of at-home restrictions due to COVID-19. However, it is notable that Target has a lower exposure to groceries compared to Walmart.Target’s FQ1 2020 revenue increased 11.3% year-over-year to $19.6 billion. The company’s comparable sales grew 10.8% essentially due to a 141% rise in digital sales while store comparable sales grew by just 0.9%.Its same-day delivery services, comprising Order Pick Up, Drive Up and Shipt services, boosted the company’s e-commerce sales as customers avoided going to the stores to curb the spread of the coronavirus. These fulfillment services helped the company’s e-commerce site win 5 million new customers in the first quarter. Target’s acquisition of last-mile platform from start-up Deliv is expected to further enhance its delivery capabilities.However, Target’s first-quarter margins took a hit as demand for higher-margin merchandise like apparel slowed down and less profitable categories like food and essentials grew. Also, higher wages and benefits to support employees weighed on the bottom line.Meanwhile, Cowen analyst Oliver Chen is optimistic about Target’s prospects owing to its exposure to home décor, food, and essentials. He notes “We acknowledge some weakness in the back-to-school portion of Home, but believe shoppers nesting at home will be a key category driver over the coming quarters.”  The analyst expects the company’s fulfillment capabilities to favor its performance. The four-star analyst reaffirmed his Buy rating for Target stock on August 4 with a price target of $150.The rest of the Street has a cautiously optimistic ‘Moderate Buy’ analyst consensus for Target stock with 10 Buy ratings, 5 Holds, and one Sell. At $130.27, the average price target implies a 2.01% downside potential lies ahead. (See Target stock analysis on TipRanks)Bottom Line Looking at the stock gain over the past one-year, Target has delivered higher returns compared to Walmart. However, based on Wall Street consensus and upside potential, Walmart currently seems to be the better choice.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment More recent articles from Smarter Analyst: * Occidental Petroleum Posts $8.4 Billion Loss in 2Q Amid Oil Price Crisis * Royal Caribbean Rises In Pre-Market On Higher Demand For 2021 Cruises * Pfenex Pops 59% On Ligand $513M Buy-Out Deal; Analyst Sees 93% Upside * American Airlines Shares Lifted By Air Travel Demand Data

Amazon Finally Finds a Good Fit at the Mall
Mon, 10 Aug 2020 16:20:25 +0000
(Bloomberg Opinion) — Amazon.com Inc. might soon be filling online orders from the kinds of shopping centers it has helped destroy.The e-commerce giant, according to the Wall Street Journal, is in talks with mall operator Simon Property Group Inc. about setting up fulfillment centers in spaces currently or formerly occupied by J.C. Penney and Sears, two once-mighty department stores that have filed for bankruptcy protection.Although initially it might seem like an unnatural fit for a warehouse to be plugged into a space that was designed for shopping, such an arrangement has the potential to accomplish important goals for Amazon and Simon.The promise of one-day or even same-day delivery is a core reason to shell out for Amazon’s Prime membership, so it benefits the company to have warehouse facilities close to population centers. Cavernous J.C. Penney and Sears stores certainly fit that bill. Potentially even more important, though, is what’s outside the department stores: giant, convenient parking lots. This setup gives Amazon the option of offering customers curbside pickup of online orders and even returns.Curbside was already gaining traction before the pandemic, but customer interest appears to have exploded in recent months as shoppers practice social distancing. Target Corp., for example, said 2 million people tried its drive-up service for the first time in the first quarter. Amazon needs more ways to compete in this model as more consumers embrace it. Whenever the coronavirus recedes, I expect pickup to remain popular, especially in suburbs where people often rely on cars instead of public transit. These are not orders that Amazon should cede competing for, because pickup orders are often more profitable than home delivery ones: There are no last-mile delivery costs.Simon, meanwhile, could consider other options for filling the holes left (or soon-to-be left) by J.C. Penney and Sears. In recent years, mall operators have often sought to enliven their centers by attracting tenants such as gyms and restaurants, which had the ability to drive foot traffic. The harsh reality of the pandemic, though, is that those businesses now carry health concerns and are not going be the reliable draw that they were even a year ago.Plus, many department stores pay trifling rents based on their historic role as anchor tenants, meaning they brought traffic to the whole mall. Given the struggles at J.C. Penney and Sears in recent years, I doubt they are doing much these days to bring visitors to Simon properties. A warehouse wouldn’t be a shopper magnet, either, but at least Simon could probably arrange to get more favorable rents than it does from a department store.In the past, Amazon has made head-scratching forays into traditional malls, such as with its now-shuttered kiosks, which showcased Kindles and other gadgets. Over the years, there has been ample chatter about Amazon potentially finding a new life for old-school retail real estate. Remember the reports that Amazon was looking to buy some RadioShack stores? It’s a good thing that never came together, because it wouldn’t have worked out well for Amazon to be saddled with a bunch of outposts in failing malls that were too tiny to use as fulfillment centers. Analysts have also discussed the idea that Amazon could use former Sears or Kmart stores for its Whole Foods Market chain, something that never made much sense to me given the differing demographic profiles of the customers of those retailers.Using old department stores as fulfillment centers, though, would finally be an Amazon.com incursion to the mall that actually makes sense.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

With half of its business at retailers like Walmart and Amazon, Wrangler parent Kontoor Brands is ‘winning with the winners’
Fri, 07 Aug 2020 21:23:00 +0000
Kontoor Brands, which spun off from VF Corp. in 2019, sells its Lee and Wrangler brands at large retailers, including Walmart.

Hostess CEO: Our employees are developing products in their home kitchens
Fri, 07 Aug 2020 17:25:13 +0000
Hostess CEO Andy Callahan chats with Yahoo Finance about what the Twinkie maker has been up to during the COVID-19 pandemic.

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