) is set to report its fourth-quarter fiscal 2012 results on Feb
27. In the last quarter it posted a positive surprise of 13.9%.
Let's see how things are shaping up for this announcement.
Growth Factors This Past Quarter
Target's efficient marketing, multi-channel strategy, product
innovation, compelling pricing strategy, and new merchandise
assortments are driving comparable-store sales and operating
margins. The company's P-fresh remodel program and 5% REDcard
Rewards program help sustain sales momentum, continue to drive
traffic and enhanced customer shopping experience. The company's
focus on "Expect More. Pay Less." brand promise is also bearing
Our proven model does not conclusively show that Target is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, #2 or #3 for this to happen. This is
not the case here as you will see below.
ESP for Target is 0.00%. This is because the Most Accurate
Estimate stands at $1.47, which is in line with the Zacks
Zacks Rank #3 (Hold):
Target's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3 when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (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 this quarter:
ConAgra Foods, Inc.
), Earnings ESP of +1.79% and Zacks Rank #1 (Strong Buy)
New York & Company Inc.
), Earnings ESP of +12.50% and Zacks Rank #2 (Buy)
Costco Wholesale Corporation
), Earnings ESP of +0.94% and Zacks Rank #3 (Hold)
CONAGRA FOODS (CAG): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
NEW YORK & CO (NWY): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
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