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Target Corporation (TGT)

Target stock forecast: buy or sell

Close on Oct 23rd, 2020
$160.23 +0.39%
3 months performance
31.30%
Published: October 23rd, 2020 - 5.49pm EDT

Target stock outlook

  • After reaching new all-time highs on Tuesday, Target closed today at $160.23 slightly moving a 0.39%
  • Price is drawing a scaled uptrend since last April with higher tops and higher bottoms. This rally marked a 79.53% gain
  • Target Corporation operates as a general merchandise retailer in the United States.

Disclaimer:
The opinions expressed in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not know the specific positions of the reader, his or her finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are posted for learning purposes only

Target stock charts

Should I buy Target stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $TGT stock a buy?

In the current situation of Target there is not any eligible buy setup. This doesn't mean $TGT will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Target stock?

When you own a stock with some profit, it's really difficult to decide the good moment to sell and get your profits. Trading strategies help us to avoid impulsive decisions based on our moods or the buzz surrounding the market. Our trading system selects very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies should not be used for shorting Target stock

A guiding principle is that you should not keep an investment that leads to higher than expected losses upon the buy. The timing to sell shares always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Target stock?

In the current situation of Target there is not any eligible sell setup, so Target stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Target stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 3 brokerage ratings were published for Target. General sentiment is bullish, with 2 out of 3 posting positive forecasts

Target ratings

Brokerage firmRating
Sep 23rd, 2020
Tigress Financial Strong buy
Oct 8th, 2020
Deutsche Bank Strong buy
Oct 16th, 2020
Jefferies Financial Group Neutral

Technical analysis

Target stock started an uptrend last April, and gained an amazing 79.53%. The price shows higher peaks and higher troughs, and along the way gave some entry points for those who wanted to invest. Latest low was in early September, when price bounced at $143.38. Now, it swings in a consolidation between its last top ($167.42) and its last bottom ($143.38)

$TGT at All-time Highs

On Tuesday, Target reached all-time highs (ATH) again at $167.42. Stock surged fast in the last 2 weeks, smashing new all-time highs 3 times

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

TGT SMAs chart

Supports and resistances

Investors use support and resistance levels as a way to find price points on a chart that tend to behave as obstacles, containing the price of shares to move up or down. A support level is a level where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until finding another support level. On the other hand, resistances are where the price may find resistance as it moves up. Likewise, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will rally more easily until it hits the next resistance

The current resistances are:

  • R1: $167.42 (4.49% above)
  • The current supports are:

  • S1: $156.10 (-2.58% below)
  • S2: $143.38 (-10.52% below)
  • S3: $128.19 (-20% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established technical strategy designed by John Bollinger. Basically, the Bollinger Bands are lines that move around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    TGT RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price fluctuations to detect when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on October 16 after just crossing to the overbough zone for 1 day (weak signal). The RSI value today was 53.63. Since that level was lost, Target stock dropped a 3.16%

    TGT RSI chart

    Earnings and financials

    Target Corporation ($TGT) came out with fiscal 2nd-quarter earnings of $3.38 per share in mid-August, highly improving the Market consensus estimate of $1.62 per share. This Q2 report means an earnings surprise of 108.64%.

    Same quarter last year, reported EPS was $1.82, so recently posted EPS means a gain of 85.71%.

    Target ($TGT) is hosting the Q3 earnings call on mid next November. Wall Street analysts expect an EPS of $1.52, that is a 55.03% less than Q2.

    TGT revenues and profits chart