Back to top

Analyst Blog

Target Corp. (TGT - Analyst Report) is slated to report third-quarter fiscal 2013 results on Nov 21, 2013. Last quarter it posted a positive surprise of 22.7%. Let us see how things are shaping up for this announcement.

Growth Factors in the Past Quarter

Target Corp’s second-quarter bottom-line results reflected disciplined cost management and effective execution of strategy, offset by lower-than-anticipated U.S. comparable-store sales. Target Corp’s efficient marketing, multi-channel strategy, product innovation, compelling pricing strategy and new merchandise assortments were the driving factors.

Earnings Whispers?

Our proven model does not conclusively show that Target Corp is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP: ESP for Target Corp is -1.61%. This is because the Most Accurate Estimate stands at 61 cents and the Zacks Consensus Estimate stands at 62 cents.

Zacks Rank #3 (Hold): Target Corp’s Zacks Rank #3 (Hold) lowers the predictive power of ESP because this Zacks Rank when combined with a negative ESP makes surprise prediction difficult. We caution against stocks with Zacks #4 and #5 Ranks (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat: 

  • Five Below, Inc. (FIVE - Snapshot Report) with Earnings ESP of 25.0% and Zacks #2 Rank (Buy)
  • The Kroger Co. (KR - Analyst Report) with Earnings ESP of 1.89%and Zacks #2 Rank (Buy)
  • Dollar Tree, Inc. (DLTR - Analyst Report) with Earnings ESP of 1.67% and Zacks #2 Rank (Buy)

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%