Target Stock Drops
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The big-box retailer’s earnings, revenue, and guidance all fell short of expectations as tariff-related uncertainty and consumer boycotts crimped consumer demand.The Minneapolis-based retailer’s revenue fell 2.
U.S. stocks saw a broad selloff Wednesday afternoon after the yield on the 10-year Treasury crossed above 4.5% rattling investors. The benchmark is a barometer for everything from mortgages to personal loans and now signaling higher borrowing costs.
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Target’s problems are escalatingTarget’s was already facing a very public revolt from some of its most loyal customers. Now it’s warning about tariffs.
Risk-averse investors often avoid individual stocks, even those of well-established, slow-growth companies like Target ( TGT 0.33%). Indeed, no stock is risk-free, and even the top retailers cannot completely rule out the possibility of failure, even in the case of an established company like Target.
Target is set to announce its fiscal first-quarter earnings on Wednesday, with analysts forecasting earnings of $1.70 per share on $24.4 billion in revenue.
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Target shares dip after Q1 earnings and sales miss estimates, with the company slashing FY2025 outlook amid soft consumer demand.
Target is slated to post first-quarter results before the bell on Wednesday, with analysts cautiously optimistic about the retailer's stock.
One final reason to scoop up Target stock is that it's a bargain right now. A look at its price-to-earnings (P/E) ratio is revealing. This metric is a frequently used means of assessing stock valuation, as it tells you how much investors are willing to pay for a dollar's worth of a company's recent earnings.
The company cut its guidance for sales and earnings and now expects a low, single-digit decline in sales, down from a previous growth projection of 1 percent, and GAAP earnings-per-share of $8 to $10, down from its previous guidance of $8.80 to $9.80.
Wolfspeed is preparing to file for bankruptcy within a matter of weeks, The Wall Street Journal reports, UnitedHealth stock gets a downgrade, and Target’s earnings miss analysts’ estimates.