Target Corp (TGT) | Score-Card Analysis

This score-card analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.

In summary, a company to have an overall score close to 100% must have the following characteristics:

  • Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
  • Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
  • The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.

The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.

This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.


Target Corp (TGT)


Summary

  • Overall Score: 61,1%
  • Positive sides:
    • Excellent last quarterly report and the stock price jump 20% on the day of release
    • Revenue growing in recent years
    • Analysts expect continued EPS growth in the next 5 years and also in the next quarter
    • Performance 3 times higher than the S&P 500 index since the beginning of 2019
  • Negative sides:
    • Net Income and Net Margin down compared to 3 years ago
    • Hedge Funds and Insiders have decreased their positions in the last quarter

Full description

Target Corporation is the eighth-largest retailer in the United States.

The overall score of TGT is 61,1% .

In the last 6 months, TGT has overperformed the S&P500 index by 39,9% and analysts believe the company is undervalued by 6,5% .

In the last quarter, the company reported revenue of 18422 million, up by 3,6% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 76847 million, up by 4,1% in the last 3 years.

TGT reported an operating income of 1324 million in the last quarter, an improvement of 16,9% compared to the same quarter 12 months earlier, also reporting an improvement of 12,8% in the operating margin. Considering the sum of the last four quarters (TTM), TGT reports an operating income of 4395,0 Million a decrease of -20,5% compared to three years ago and a reduction of -23,7% in the operating margin.

TGT reported a net income of 938 million in the last quarter, an improvement of 17,4% compared to the same quarter 12 months earlier, also reporting an improvement of 13,3% in the net margin. The TTM net income is 3108 million a decrease of -6,4% compared to three years ago and has worsened by -10,1% .

In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 7,3% and a growth in revenue of 3,6% . Furthermore, they expect an annual growth of TGT EPS by 9,3% for the next 5 years.

In the last quarter, TGT reported better EPS than analysts’ expectations and the stock price reacted by increasing by 20,4% .

Finally, in the last 3 months the Hedge Funds have decreased their positions by 2.4M shares. The Insiders have sold shares worth $27.79M .


Do you want to stay updated on all the analysis published?

BullDude | Facebook group

BullDude | Telegram channel


This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.


To learn about all the types of analysis you find on BullDude.com click here


Sources & additional info

*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com


If you liked this analysis, share it on Twitter or Facebook with the 2 buttons at the top or bottom of the page!!!


DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.