Target Corp.

Target Corp. (TGT - Analyst Report) is jumping higher as the company benefits from its value oriented consumer approach and a resurgence in consumer confidence.

Company Description

Target operates as a general merchandise and food discount store in the united States. The company was founded in 1902, operates more than 1,650 stores and has a market cap of $38 billion.

Shares of TGT have more than doubled over the last 6 months, rallying with the market on growing consumer confidence and better than expected second-quarter results, reported on Aug 18.

Second-Quarter Results

Sales were down a marginal 2.7% from last year to $14.6 billion, but earnings came in better than expected at 79 cents per share, 13 cents ahead of the Zacks Consensus Estimate.

Gross margin improved to 31.9% from 31.2% while selling, general and administrative costs were down .4%, a reflection of the company's attempts to become more efficient in a tough market. Target also added that its net write offs were $304 million in the quarter, in line with expectations with over $1 billion remaining for projected future write offs.

Estimates

Over the last 2 months, the current-year estimate is up 22 cents to $3.08 per share. The next-year estimate is pegged at $3.46, a solid 12.5% growth projection.

Valuation

Based on the current-year estimate, this stock has a P/E multiple of 16X, a slight discount to the overall market.

The Chart

Shares of TGT have posted big gains over the last 6 months, more than doubling in price after bottoming out in early March. Take a look below.

Read the full analyst report on TGT