Q2 STOCKS TO BUY

Target Reports Profit Beat, Shares on the Rise

Options volume is running at 10 times the intraday average amount

Deputy Editor
Feb 28, 2023 at 10:29 AM
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Target Corp (NYSE:TGT) reported fourth-quarter profits of $1.89 per share on revenue of $31.40 billion before the bell this morning, higher than the $1.40 per share and $30.72 billion anticipated by analysts, and marking the company's first earnings beat in a year. The retail giant also posted a weak 2023 forecast, however, as it joins its sector peers in caution due to the uncertain U.S. economy. 

At last glance, TGT was up 3% at $171.86. The shares recently bounced off their 200-day moving average after a short dip on the charts, and are now back to their mid-February levels. Year-to-date, the equity is up 14.7%. 

Analysts have yet to chime in after the earnings event. Of the 28 in coverage, 18 carry a "buy" or better rating, with the remaining 10 a tepid "hold." The 12-month consensus price target, meanwhile, sits at $177.10 -- a slim premium to current levels. 

Options traders, on the other hand, are chiming in at 10 times the intraday average, with 33,000 calls and 30,000 puts exchanged so far. The weekly 3/3 175-strike call is the most popular, with new positions being opened there. 

 

 

 

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