Target Q4 Preview: Top-Line Focus As Earnings Strength Appears Priced In

Summary:

  • Target is set to report its Q4 and full-year results this Tuesday.
  • In advance of the release, shares have gained more than 40% since my last preview article before its Q3 results.
  • Better-than-expected profitability is one significant aspect of Target’s recent outperformance. The bottom line performance has also overshadowed persistent weakness in the top line.
  • Looking ahead, I believe much of the earnings strength is already priced into Target’s share price.
  • In my view, this warrants a greater focus on sales growth to inspire further bullishness.
People shopping at one of the Target stores

Sundry Photography

The 2023 calendar was a rollercoaster of a year for Target (NYSE:TGT). Spirits were high at the beginning of the year as its inventory position normalized following overstocked shelves. It then found itself at the center of an industry-wide spike


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