We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Target (TGT) to Post Q3 Earnings: Digitization to Play a Key Role
Read MoreHide Full Article
Target Corporation (TGT - Free Report) is slated to release third-quarter fiscal 2021 numbers on Nov 17, before the market opens. Amid an evolving and challenging retail landscape, this general merchandise retailer has been focusing on store refurbishments, enhancing digital capabilities and expanding same-day fulfillment options, keeping in mind speed and convenience.
Strong Delivery Services are Key to Growth
Target, which is among the biggest winners amid the pandemic, has been deploying resources to enhance omni-channel capacities and adopt strategies to provide a seamless shopping experience. Without doubt, the company’s improving digital sales is a reflection of the same. We note that in the last reported quarter digital comparable sales grew 10%.
Consumers’ preference for online deliveries has grown significantly, especially amid the pandemic. This has been stimulating demand for efficient delivery and pickup services. Target has been making constant efforts to enhance shopping methods and techniques through miscellaneous channels, and these have been yielding results.
The company’s commitment to offer a unique shopping experience with safe and convenient options has been driving performance. Some of these initiatives like contactless Drive Up and Order Pickup, and same-day delivery with Shipt are worth mentioning. Customers have been responding positively to such shopping tools.
In the last reported quarter, same-day services (Order Pick Up, Drive Up and Shipt) grew approximately 55%. Sales fulfilled by Shipt were up nearly 20% year over year, while sales through Drive-Up were up more than 80% during the quarter. We note that Order Pickup rose more than 30%.
Target Corporation Price, Consensus and EPS Surprise
The Zacks Consensus Estimate for Target’s third-quarter revenues is pegged at $24,611 million, indicating an improvement of 8.8% from the prior-year quarter. The consensus mark for earnings per share has increased 1.4% over the past seven days to $2.82. The figure suggests growth of roughly 1.1% from the year-ago period.
However, our proven model does not conclusively predict an earnings beat for Target this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Target carries a Zacks Rank #3, its Earnings ESP of -0.95% makes surprise prediction difficult.
Wrapping Up
Thanks to its one-stop shopping destination, customers have been opting Target amid the pandemic for its multi-category assortment of owned and exclusive brands as well as popular national brands.
Target has been ramping up investments in the wake of rising competition from the likes of Dollar General (DG - Free Report) , Kroger (KR - Free Report) and Walmart (WMT - Free Report) , which have been enhancing their online presence and boosting collaborations with logistics service providers to gain market share.
Recently, Dollar General announced a partnership with DoorDash, a leading last-mile logistics platform, for offering on-demand delivery of household essentials, including food, snacks, cleaning supplies, and more. Kroger has collaborated with Instacart for offering the ‘Kroger Delivery Now’ service, which provides customers with food and household staples in 30 minutes. Walmart is also acclaimed for its notable strides to ramp up deliveries. The company has alliances with DoorDash and Instacart. Walmart’s Express Delivery solutions help fulfill orders in less than two hours.
While Walmart and Kroger carry Zacks Rank #3, Dollar General has a Zacks Rank #4 (Sell).
Image: Bigstock
Target (TGT) to Post Q3 Earnings: Digitization to Play a Key Role
Target Corporation (TGT - Free Report) is slated to release third-quarter fiscal 2021 numbers on Nov 17, before the market opens. Amid an evolving and challenging retail landscape, this general merchandise retailer has been focusing on store refurbishments, enhancing digital capabilities and expanding same-day fulfillment options, keeping in mind speed and convenience.
Strong Delivery Services are Key to Growth
Target, which is among the biggest winners amid the pandemic, has been deploying resources to enhance omni-channel capacities and adopt strategies to provide a seamless shopping experience. Without doubt, the company’s improving digital sales is a reflection of the same. We note that in the last reported quarter digital comparable sales grew 10%.
Consumers’ preference for online deliveries has grown significantly, especially amid the pandemic. This has been stimulating demand for efficient delivery and pickup services. Target has been making constant efforts to enhance shopping methods and techniques through miscellaneous channels, and these have been yielding results.
The company’s commitment to offer a unique shopping experience with safe and convenient options has been driving performance. Some of these initiatives like contactless Drive Up and Order Pickup, and same-day delivery with Shipt are worth mentioning. Customers have been responding positively to such shopping tools.
In the last reported quarter, same-day services (Order Pick Up, Drive Up and Shipt) grew approximately 55%. Sales fulfilled by Shipt were up nearly 20% year over year, while sales through Drive-Up were up more than 80% during the quarter. We note that Order Pickup rose more than 30%.
Target Corporation Price, Consensus and EPS Surprise
Target Corporation price-consensus-eps-surprise-chart | Target Corporation Quote
How are Estimates Shaping Up?
The Zacks Consensus Estimate for Target’s third-quarter revenues is pegged at $24,611 million, indicating an improvement of 8.8% from the prior-year quarter. The consensus mark for earnings per share has increased 1.4% over the past seven days to $2.82. The figure suggests growth of roughly 1.1% from the year-ago period.
However, our proven model does not conclusively predict an earnings beat for Target this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Although Target carries a Zacks Rank #3, its Earnings ESP of -0.95% makes surprise prediction difficult.
Wrapping Up
Thanks to its one-stop shopping destination, customers have been opting Target amid the pandemic for its multi-category assortment of owned and exclusive brands as well as popular national brands.
Target has been ramping up investments in the wake of rising competition from the likes of Dollar General (DG - Free Report) , Kroger (KR - Free Report) and Walmart (WMT - Free Report) , which have been enhancing their online presence and boosting collaborations with logistics service providers to gain market share.
Recently, Dollar General announced a partnership with DoorDash, a leading last-mile logistics platform, for offering on-demand delivery of household essentials, including food, snacks, cleaning supplies, and more. Kroger has collaborated with Instacart for offering the ‘Kroger Delivery Now’ service, which provides customers with food and household staples in 30 minutes. Walmart is also acclaimed for its notable strides to ramp up deliveries. The company has alliances with DoorDash and Instacart. Walmart’s Express Delivery solutions help fulfill orders in less than two hours.
While Walmart and Kroger carry Zacks Rank #3, Dollar General has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.