Schaeffer's Top Stock Picks for '25

Target Stock Added to BAML's US 1 List Despite Post-Earnings Bear Gap

BofA-Merrill Lynch already held a "buy" rating on Target stock

Managing Editor
May 30, 2018 at 9:30 AM
facebook X logo linkedin


Target Corporation (NYSE:TGT) is trading higher this morning after BofA-Merrill Lynch placed the retailer on its U.S. 1 list, citing the company's ability to maintain positive same-store sales momentum and demographic trends. The firm reiterated its "buy" rating and price target of $86. In response, shares of TGT are up 0.6% at $72.11 in early trading. 

This comes less than a week after the stock's post-earnings bear gap, where TGT fell back below the $71 level and 80-day moving average -- a trendline it's set to take back today. And despite the stock's recent underperformance, it still had a year-over-year gain of nearly 31% coming into today. Analyst sentiment has been very pessimistic, however. Of the 17 brokerage firms following Target stock, 13 currently sport tepid "hold" or "strong sell" ratings. 

Looking towards the options pits, traders have also been bearish in recent weeks. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), shows Target stock with a 10-day put/call volume ratio of 1.16, ranking in the 90th percentile of its annual range. This suggests that puts have been purchased over calls at a faster-than-usual clip during the past two weeks.

Regardless of the stock's recent performance, now may be an opportune time to consider TGT's short-term options with earnings in the rear view. The equity's Schaeffer's Volatility Index (SVI) of 22% ranks in the low 12th percentile of its annual range, indicating premium on short-term contracts is relatively cheap at the moment, from a volatility standpoint.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));