Target makes it into Josh Brown's Best Stocks list as the retailer's charts show signs of life
Josh Brown and Sean Russo break down what's going on with Target.
TL;DR
- Target (TGT) stock has seen a significant turnaround, outperforming Walmart (WMT) in recent performance metrics.
- The stock experienced a 7% gain after reporting earnings, beating EPS expectations despite a slight miss on revenue.
- Prior to the recent bounce, Target was in a 68% drawdown, worse than its Global Financial Crisis drawdown.
- New organizational changes, including a new CEO and board members, have been implemented with a focus on simplicity, speed, and accelerated growth.
- Investments include 30 new full-size stores and 130 remodels by 2026, aiming for 2-4% annual sales growth.
- Target's retail media network, Roundel, generated $2 billion in revenue and is expected to double in size within five years.
- Technical indicators show a positive shift, with the stock reclaiming its 200-day moving average and momentum building.
- Key risk management levels are identified around the 50-day ($108) and 200-day ($99-$100) moving averages.