Will Target Beat Earnings? - Analyst Blog
21 Maggio 2013 - 4:20PM
Zacks
Target Corporation
(TGT), an S&P 500 company and the operator of general
merchandise and food discount stores in the United States, is set
to report its first-quarter fiscal 2013 results on May 22. In the
last quarter, it posted a positive surprise of 12.2%. Let’s see how
things are shaping up for this announcement.
Growth Factors this
Past Quarter
Target’s efficient marketing,
multi-channel strategy, product innovation, compelling pricing
strategy, and new merchandise assortments are driving
comparable-store sales and operating margins. The company’s P-fresh
remodel program and 5% REDcard Rewards program help sustain sales
momentum, continue to drive traffic and enhance customer shopping
experience. The company’s focus on “Expect More. Pay Less.” brand
promise is also bearing fruit.
Earnings
Whispers?
Our proven model does not
conclusively show that Target is likely to beat earnings this
quarter. That is because a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a
Zacks Rank of #1, #2 or #3 for this to happen. This is not the case
here as you will see below.
Zacks ESP: ESP for
Target is 0.00%. This is because the Most Accurate Estimate stands
at 86 cents, which is in line with the Zacks Consensus
Estimate.
Zacks Rank #3
(Hold): Target’s Zacks Rank #3 (Hold) lowers the
predictive power of ESP because the Zacks Rank #3 when combined
with a 0.00% ESP makes surprise prediction difficult. We caution
against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going
into the earnings announcement, especially when the company is
seeing negative estimate revisions momentum.
Other Stocks to
Consider
Here are some other companies you
may want to consider as our model shows they have the right
combination of elements to post an earnings beat this quarter:
Flowers Foods,
Inc. (FLO) with an Earnings ESP of +9.38% and a Zacks Rank
#1 (Strong Buy).
J&J Snack Foods
Corp. (JJSF) with an Earnings ESP of +0.90% and a Zacks
Rank #2 (Buy).
ConAgra Foods,
Inc. (CAG) with an Earnings ESP of +1.70% and a Zacks Rank
#3 (Hold).
CONAGRA FOODS (CAG): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
TARGET CORP (TGT): Free Stock Analysis Report
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