Important note

This AI stock analysis for Target is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Target - AI Stock Analysis

Analysis generated March 18, 2025

Target Corporation (NYSE: TGT) is a well-known American retail corporation providing a variety of consumer goods including apparel, furniture, groceries, and electronics. With over 1,800 stores across the United States, Target has established itself as a key player in the retail sector. The company also operates an online platform that is pivotal to its omni-channel retail approach. Despite recent market volatility, Target continues to adapt through strategic investments in e-commerce and same-day delivery services.

Fundamental Analysis

Target's financial performance for the last quarter reveals a nuanced story of growth and caution:

• Revenue: The last quarter's revenue stands at $30.9 billion, marking a 20.50% increase compared to the previous quarter. However, it represents a 2.83% decrease from the same quarter last year, raising some concerns about year-over-year performance.
• Net Income: The net income was $1.1 billion, showing a promising 29.16% increase from the previous quarter but a 20.19% decrease from the same quarter last year, which might be alarming.
• EBITDA: The EBITDA for the last quarter was $2.11 billion, up by 16.93% from the prior quarter but down by 15.98% compared to the previous year's corresponding quarter.
• P/E Ratio: The current P/E ratio is 11.93, which may be considered low, potentially indicating undervaluation and a bullish outlook.

These mixed signals suggest cautious optimism but highlight potential vulnerabilities, especially in year-over-year comparisons.

Technical Analysis

Target's technical metrics underscore bearish sentiments:

• Current Stock Price: The stock is currently priced at $104.59, representing a 19.61% drop from a month ago and a 35.81% decrease from a year ago. These declines are concerning both in the short and long term.
• Moving Averages: The SMA10 is currently 107.78, lower than the previous SMA10 of 108.83, suggesting a potential downward trend in price movement.
• RSI: The RSI stands at 77, indicating a potentially overbought bearish condition, typically a sell signal.

Alternative Data Analysis

Various alternative data metrics provide additional insights:

• Job Postings and Employee Sentiment: Target has 10,063 open positions, with employee sentiment showing that only 44% of employees have a positive outlook. This low morale is concerning.
• Customer Acquisition: The estimated number of visitors to Target's webpage is 142 million, although this has declined by 35% in the last few months. Additionally, 11,000 users download their mobile apps daily, down by 53% in recent months, indicating trouble in customer retention.
• Customer Engagement: Target has 6.1 million Instagram followers and 2 million Twitter followers. However, the number of Twitter followers has dropped by 1%, suggesting a loss in public interest. The AltIndex AI score, which predicts stock movements based on comprehensive data analysis, rates Target at 20, a strong sell signal.

Conclusion

In conclusion, while Target demonstrates certain strengths in quarterly growth and potential undervaluation, the stock faces several challenges. The year-over-year declines in key financial metrics, coupled with bearish technical indicators and concerning alternative data signals, suggest cautiousness. The AI score of 20 further reinforces a strong sell signal. Therefore, a conservative approach would advise investors to carefully monitor Target's performance and consider these mixed indicators before making any decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.