Target’s Stock Reflects Potential Turnaround

Target pic
Target pic
Target
Image: marketwatch.com

A former managing director for CRT Sterne Agee, Chuck Grom joined Gordon Haskett Research Advisors in February of 2017. In his role with the firm, Chuck Grom provides analysis for broadline and department store stocks such as Wal-Mart, Costco, and Target.

Following four straight quarters in which it experienced a decline in sales, Target’s fortune appears once again to be on the rise. The Minneapolis-based company anticipated another slight decline in the second quarter of 2017, but is now predicting a modest increase in sales. Additionally, it expects second-quarter profit to be roughly $1.15 per share as opposed to its original estimate of $0.95. Consequently, in mid-July, shares rose over four percent to more than $53.

Target faces tough competition from Wal-Mart and the online marketplace, but the recent figures are encouraging for the company, which has focused on improving customer experiences online and in stores as well as promoting its exclusive brands. Target’s CEO, Brian Cornell, lauded the success of Cloud Island, a brand which offers nursery decor, and noted the company plans to roll out four more exclusive home and clothing brands in the near future.

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