Target Corporation (TGT) is one of the top-10 largest retailers in the U.S., providing a wide selection of household goods, apparel, electronics, personal care items, pharmacy services and more. Nearly 200 of Target’s approximately 1,800 U.S. brick & mortar locations are known as “SuperTargets”, and also provide a full range of grocery, deli and fresh bakery items on top of the standard offerings. Target Corporation is set to report third quarter earnings 11/19 before the opening bell, and as of this post (11:00AM CST), TGT is trading around 66.80, down a modest 0.50% on the day and still well within the upper area of its 52 week trading range of 54.66-68.28.
Earnings reactions from the last eight quarters’ reports have been evenly mixed, with TGT trading higher exactly half of the time (4 out of 8 sessions immediately following the EPS release), with an average historical move during this period of approximately 4.2%. The options market is currently implying a move of approximately $2.50 in TGT following tomorrow’s EPS release, which would represent about a 3.73% move in the underlying stock, slightly below the historical average. Also as mentioned above, TGT is trading strongly just off of the highs for the year, and remains above both the upward sloping Ichimoku Cloud and the relevant moving averages. For these reasons, I am currently bullish TGT and will be looking to get long into the earnings report tomorrow.