), an S&P 500 company and the operator of general merchandise
and food discount stores in the United States, is set to report
its first-quarter fiscal 2013 results on May 22. In the last
quarter, it posted a positive surprise of 12.2%. 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 enhance 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 86 cents, 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:
Flowers Foods, Inc.
) with an Earnings ESP of +9.38% and a Zacks Rank #1 (Strong
J&J Snack Foods Corp.
) with an Earnings ESP of +0.90% and a Zacks Rank #2 (Buy).
ConAgra Foods, Inc.
) with an Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).
CONAGRA FOODS (CAG): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
TARGET CORP (TGT): Free Stock Analysis Report
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