Investing

Earnings Previews: Lowe's, StoneCo, Target, TJX

Of 31 analysts covering Target, 23 have given the stock a Buy or Strong Buy rating and seven others rate the shares at Hold. At a price of around $267, the upside potential based on a median price target of $285 is 6.7%. At the high price target of $320, the upside potential is 13%.

The consensus third-quarter revenue estimate is $24.58 billion, down 2.3% sequentially and up 8.6% year over year. Adjusted EPS are forecast at $2.80, down 23% sequentially and up by a penny year over year. For the full year, analysts expect Target to report EPS of $13.03, up 38.4%, on sales of $104.48, up 11.7%.

Target’s share price to earnings multiple for the 2022 fiscal year is 20.5. For the 2023 fiscal year, the multiple to estimated EPS of $12.97 is 20.6, and for 2024, it is 19.1 times estimated EPS of $15.46. The stock’s 52-week range is $160.51 to $267.84. The high was posted early Monday morning. Target pays an annual dividend of $3.60 (yield of 1.38%).

TJX Companies

TJX Companies Inc. (NYSE: TJX) operates around 3,000 retail stores worldwide under well-known names like T.J. Maxx, Marshall’s and HomeGoods. The company’s stock has risen by about 19% over the past 12 months but has stalled since the beginning of the year, adding just 4% so far in 2021. TJX’s outlook for the 2021 holiday season will play a big role in how the stock moves after the earnings report is released. The company reports third-quarter results early Wednesday.

Of 25 analysts covering the company, 21 have a Buy or Strong Buy rating on the stock, and three more rate the shares at Hold. At a price of around $70, the upside potential based on a median price target of $84 is 20%. At the high price target of $101, the upside potential is 44%.

Third-quarter revenue is forecast to come in at $121.24 billion, which would be 1.4% higher sequentially and up 21% year over year. Adjusted EPS are pegged at $0.81, up 26.5% sequentially and 14% year over year. For the fiscal year ending in January 2022, analysts expect EPS of $2.92, up more than 1,000%, on sales of 48.13, up 50%.

TJX’s share price to earnings multiple for the 2022 fiscal year is 24.0. For the 2023 fiscal year, the multiple to estimated EPS of $3.40 is 20.6, and for 2024, the multiple is 18.7 times estimated EPS of $3.74. The stock’s 52-week range is $59.12 to $76.16. TJX pays an annual dividend of $1.04 (yield of 1.51%).

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