As inflation rears its ugly head, consumers and investors alike are looking for bargains. It's no surprise that Target is among the leaders in this new, more frugal economy. Its stock had a long run-up to the Covid market crash and has rebounded faster than some rivals. On Monday the Relative Strength (RS) Rating for Target stock climbed to 77, up from the 60s the day before.
The 77 RS Rating brings it near the edge of a possible takeoff. Market research shows that the best-performing stocks typically have an RS Rating north of 80 as they launch their biggest runs. See if Target can continue to show renewed price strength and hit that benchmark.
Big Money Fairly Heavy Target Stock Buyers
Among the Minneapolis-based company's other key ratings it earns an 88 EPS Rating, putting it in the top 12% of all stocks in terms of profit growth recently and over the long-term. Its 93 Composite Rating is even stronger.
Additionally, it has a B Accumulation/Distribution Rating, on an A+ to E scale, showing that mutual funds, ETFs and other large investors are fairly heavy buyers of its stock.
Target stock soared 347% from an intraday low 60.15 in December 2018 to an all-time high 268.98 in mid-November last year. It's consolidated since amid market consolidation, and closed Monday at 229.31, down 1.7% for the day.
The company's earnings grew 9% last quarter to $3.19 on a 19% increase in revenue to $31 billion. Target is expected to put out its next quarterly report on or around May 18.
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Target stock is trying to complete a cup without handle with a 269.08 buy point. See if it can clear the breakout price in heavy trade.
Top Peers In Retail Discount Group
Target stock earns the No. 2 rank among its peers in the Retail-Major Discount Chains industry group, second only to Costco Wholesale. Target archrival, and the world's biggest retailer by revenue, Wal-Mart, comes in No. 3.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary rating tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
