Worries had hit shares of Target Co. (NYSE: TGT) as rising crime waves in some states where the brand has the most square footage, like California, created a headwind for future earnings. However, these fears seem to have been put to bed as the company released its second quarter 2024 earnings results, sending the stock higher by up to 14% in a single day on a positive reaction to the numbers.
In addition to this financial momentum, investors can be sure that the macro picture is also working for consumer staples stocks like Target, as seen in the resilient price performance of a peer like Costco Wholesale Co. (NASDAQ: COST), which still trades at 98% of its 52-week high. Even after the recent rally, Target stock only trades at 88% of its 52-week high, giving investors an opening in price action to see a bit more upside ahead.
More than that, Target's discretionary items segment also saw a slight improvement over the quarter, showing that the promise of interest rate cuts from the Federal Reserve by the end of 2024 could increase confidence in the consumer sector in the coming quarters. However, the value left in the company is found inside the financials for those who know how to look, so here's a snippet.
Strong Financial Results Show Target Stock Firing on All ...
