Skip to content

Target stock soars 17% to a 3-month high; What’s behind the rally?

Target stock soars 17% to a 3-month high; What’s behind the rally?

Target (NYSE: TGT), one of the leading retail giants in the United States, faced persistent challenges in 2023. 

Struggling against shifting consumer sentiment, sluggish sales, and weakened demand for specific product categories, Target’s stock market performance reflected these difficulties. Moreover, widespread boycotts against the controversial Pride-themed clothing line for children exacerbated the company’s woes. 

However, on Wednesday, November 15, Target experienced a significant turnaround, with its stock surging more than 17%, providing a much-needed boost.

What caused Target’s stock price surge?

The large spike in TGT shares came after the retailer revealed a big earnings beat for the fiscal Q3 2023

Driven by robust sales in specific categories such as food and beauty, Target reported earnings per share (EPS) of $2.10, smashing the Wall Street estimates of $1.48.

Revenue came in at $25.4 billion, also above the estimated $25.24 billion. 

Still, the headwinds that have been troubling Target throughout 2023 are far from gone. Notably, consumers are mainly buying essential products, and continue to hunt for lower prices. 

The company’s comparable sales – which do not take into account the impact of store openings, closures, and renovations – fell for the second consecutive quarter. 

The retail industry has been experiencing a slowdown as consumers faced a budget crunch caused by elevated prices. This has been particularly detrimental for Target, which sells a heavier combination of clothing, home goods, and impulse purchases compared to rivals. 

TGT stock price analysis

At the time of publication, shares of Target were standing at $129.21, up 17.26% in the past 24 hours.

TGT 1-day stock price chart. Source: Finbold

The upswing took TGT’s stock price to a three-month high, however, its year-to-date performance remains negative at -14.1%, significantly underperforming the broader S&P 500 index, which climbed 18% this year. 

Analysts at RBC Capital Markets said Target’s report was better than anticipated almost across the board, although it “does not change the fact that the consumer backdrop seemingly deteriorated throughout the quarter,” they wrote in a post-earnings note.

The retailer expects roughly the same performance in the current holiday quarter, forecasting EPS in the range of $1.90 to $2.60, and a mid-single-digit decline in comparable sales. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.