Target Earnings Surge over 50% in Q4

You can just feel that Target is starting to find its way again. I wrote a piece last month about management's decision to reinstate its stock repurchase initiative. Juxtaposing the new stance on buybacks with the earnings growth, it's difficult not to conclude that the business is one to look at.

As with any good story, there are some dull chapters. In this case, we have lackluster same-store sales. The metric increased by a paltry 0.6% in Q4. It wasn't a decline, at least.

But the gross margin for both the quarter and the full fiscal year expanded. The only problem with this expansion is the fact that lower-margin sales, which experienced an uptick, acted as an offsetting element.

Overall, though, I come away from the report with a bullish mindset. Target's stock has already had a move, but so long as management keeps its focus, I believe there is further upside to the shares. As always, I suggest you try for a cheaper price if you decide to invest in the retailer. Buying lower rather than higher never hurts.

Disclosure: I don't own any company mentioned; positions can change without notice.