Target Is Up 58% This Year. Here's Why the Dividend King Has a Lot to Prove on Aug. 19.
Investors are counting on a continuation of the discount retailer's nascent turnaround, and there's no room for error.
Overview
It's been a surprisingly good year so far for Target (NYSE: TGT) shareholders. After several years of disappointing sales resulting in a broadly declining stock performance, shares of this retailer are up 58% year to date.
Simply put, investors are finally seeing a glimmer of hope for a turnaround. Total revenue rose 6.7% year over year in its first fiscal quarter, which ended in early May. That was driven in part by a 4.4% increase in foot traffic, resulting in same-store sales growth of 5.6%.
Details
Although analysts don't expect Target's fiscal second-quarter numbers to grow quite as much as they did in Q1, the company's still quite optimistic: When it reported in May, it doubled its previous full-year sales growth guidance from around 2% to around 4%. Management's also looking for earnings per share of between $7.50 and $8.50 for fiscal 2026 (which will end in late January). The analysts' consensus expectation is for earnings per share of $8.43.
Source
Originally published at www.fool.com.