Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Target Corporation (NYSE: TGT) is a publicly traded large-cap company on the New York Stock Exchange. The company is engaged in the operation and ownership of general merchandise stores. Its product offerings include perishables, dry groceries, dairy, and frozen items. The company has a market capitalization of $57B.
A brief financial outlook
Being a large-cap company with a market cap of over $75B, this hypermarket giant has captured the majority of the market and hence the overall growth has slowed down after the company reached a mature stage.
As of now, the yearly revenue of the company is growing at a slow CAGR rate of 8.73% over the last few years. In 2022, the company made up sales figures of $109B. However, due to the intense capital required sector, the net profit stayed at $2.7B with a margin of 2.5%
Target Corporation is also paying out regular dividends to its shareholders. The dividend per share for 2022 was $3.4 while the dividend yield was 1.5%
Key performance indicators
Furthermore, we will take a look at some important ratios. The Price to Earnings ratio stands at 28.17. In addition to this, the return on equity is an impressive 23% for a large-cap stock. On the downside, the company is facing some liquidity issues, with a current ratio of 0.92. Additionally, the long-term debt is high compared to reserves, with a Debt-to-Equity ratio of 1.84.
Technical analysis and price prediction of TGT stock
At present, the TGT stock price is trading at the level of $124. the stock price is seen in a deep downtrend from 2021. One of the indicators is the EMAs which are way above the current price action, the 50 EMA is at $129, while the 200 EMA is at $146.
Furthermore, the immediate support level for the TGT stock price will be at $122 while the immidiate resistance to the stock is at $127. As the bulls have rebounded from their first support level they are likely to try to get past the first resistance. If the breakout occurs, then the TGT stock price will move towards the 2nd resistance, which is at $135.
Apart from the pivot levels, the moving average indicators like the MACD and RSI are showing consolidation. The MACD line and its EMA are having a tussle for a crossover of either side, the same is true with the RSI and its SMA. As of this writing, the MACD and its EMA are at the levels of -1.78 and -1.92 respectively, while the RSI and its SMA are at the levels of 45 and 40 respectively.
Conclusion
The Price prediction for the TGT stock will be bullish as it is likely to make a high after rebounding its support, which will also cause the indicators to show strength in the bulls If the momentum is strong enough, the bulls are likely to push past the immediate resistance and will cater towards the level of $127
Technical Levels
Support levels: $122, $117
Resistance levels: $127, $135
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/16/tgt-stock-analysis-hypermarket-giant-near-its-156-week-low/