Last trading week was crazy, but the start of this week was even more crazy. Everybody said don`t buy the dip, and now you can clearly see that everybody is doing the opposite. They are buying the dip. But take a look at one of the top stocks I am looking at in times like this.
Target Inc jumped nearly 6% on Monday, while WalMart jumped nearly 8%. Target Inc warned investors that its holiday season was weaker than the company was expecting. Wall Street expects Target Inc to earn $1,66 per share on revenue of $23,47 billion. Last year earnings came to $1,53 per share on revenue of $22, 98 billion.
The consumer is strong and remain the driving force of the U.S economy. Just as important, big-box retail is not dead, as evidence by the strong earnings results and forecasts just delivered from Walmart.
Can Target Inc keep up the pace? Target Inc has been one of the better performers in the retail sector, with its shares up 42% over the past year, thanks to the company`s e-commerce initiatives. But with concers about the coronavirus, Target Inc will need strong top-and bottom-line results, solid growth and upside guidance to keep Wall Street excited about its direction.
Watch out for Target Inc before the open on Tuesday March 3.