Target (NYSE: TGT) rose by 5% on Tuesday morning, after the retailer posted earnings that beat Wall Street expectations.
However, it is late in this stock’s intermediate cycle and those who are bullish may find better prices after a near-term dip.
The company reported earnings per share of $1.53 and total revenue of $22.98 billion, compared to analyst estimates of $1.52 and $22.92 billion. Also, management’s earnings guidance for both the quarter and fiscal year also exceeded the analyst expectations.
“Every piece of our strategy is working,” explained CEO Brian Cornell. “As the shakeout in retail continues, the separation between those who can and cannot afford to invest is real.”
But looking at the market cycles for TGT, we can see that while it is still in the rising phase of its current cycle, it is getting late in this cycle.
We see the stock correcting into mid-April, with support at $73 and $70, which are good spots for a bullish entry.
Target Corporation (TGT) Stock Weekly Chart
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