On Tuesday Target stock got an upgrade to its Relative Strength Rating from 70 to 74. Its ratings are a mixed bag, with the OK but not-yet-great 74 RS Rating but an outstanding 93 Earnings Per Share Rating, reflecting recent strong profit growth. Target stock fell Tuesday in sync with the market retreat.
Target stock began forming a long cup base a year ago in early February with a 181.70 entry. It dropped to a 102.93 intraday low in early October and then started up the right side of the cup. It's risen about 41% in the last four months and is trying to complete a cup without handle base. See if it can clear the breakout price in heavy trade.
Target Stock Closing In On Key Rating Benchmark
The 74 RS Rating shows that Target topped nearly three-fourths of all stocks for price performance over the past year. Market history shows that the best stocks often have an RS Rating above 80 in the early stages of their moves. See if Target can continue to show renewed price strength and clear that threshold.
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Target began a turnaround in earnings when it reported a 362% surge in EPS for the quarter that ended July 31 last year. And on Nov. 15 Target stock shot up 17.75% after it reported a 36% jump in EPS for the Oct. 31-ended quarter, to $2.10 per share, confirming a rebound from earlier weak earnings growth.
Sales haven't yet followed suit. On the mid-November report Target said revenue dipped 4% for the quarter to $25.4 billion, an improvement from a 5% drop the prior quarter but its second quarter in a row of declining sales. The company says on its website it will hold a conference call on March 5 to discuss its fourth quarter and full-year results.
No. 2 Rank In Big Box Retail Group
Target stock earns the No. 2 rank among its peers in the Retail-Major Discount Chains industry group. Costco ranks No. 1 and Target archrival Walmart is No. 3 among the group's highest-rated stocks.
When researching the best stocks to buy and watch, a stock's relative price strength vs. other stocks is a good indicator. IBD's unique Relative Strength Rating tracks market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
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