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Target (TGT) ended Wednesday's session in the green after second-quarter numbers were digested by the market. The shares closed higher by 2.5%, settling at a quote of $51.95. Volume was heavy.
That's technically a positive sign, but I should point out that we're in a tough environment. You can't trust any gain if you're a trader. If you happened to buy the retailer for a quick move before earnings were released, I hope you got out Wednesday, because once the thesis is realized, it's best to book profits and wait for another entry point.
Then again, maybe you bought Target as a long-term investment. In that case, the three-month data may justify your decision to hold for a while.
Target earnings per share increased 17% to 92 cents. While that represents relatively impressive growth, it bears mentioning that this bottom-line figure merely met expectations. And same-store sales, while on the positive side, only went up 1.7%. Let's put that latter metric in perspective, however: last year, the retailer reported a decline of 6.2% for comps.
I'd like to see the same-store stat go a little higher, but I think we can remain patient on that count. Overall, I thought Target's management put in a solid performance, and I find the stock to be in reasonably good shape. Again, though, the chain is a story for patient investors; traders should wait for a different price before initiating a new position.
Disclosure: I don't own any company mentioned; positions can change without notice.
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