Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

1 Stock To Buy, 1 To Dump When Markets Open: Target, Twitter

By Investing.com (Jesse Cohen/Investing.com)Stock MarketsMay 15, 2022 11:39
uk.investing.com/analysis/1-stock-to-buy-1-to-dump-when-markets-open-target-twitter-200518807
1 Stock To Buy, 1 To Dump When Markets Open: Target, Twitter
By Investing.com (Jesse Cohen/Investing.com)   |  May 15, 2022 11:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Stocks on Wall Street rallied on Friday to cap off another brutal week, with the benchmark S&P 500 suffering its longest weekly losing streak since 2011 amid ongoing worries over the Federal Reserve's plans to aggressively raise interest rates.

S&P 500, Dow, NASDAQ Chart
S&P 500, Dow, NASDAQ Chart

The coming week is expected to be another busy one amid more earnings from notable companies like Walmart (NYSE:WMT), Home Depot (NYSE:HD), Lowe’s Companies (NYSE:LOW), Kohl's (NYSE:KSS), Cisco (NASDAQ:CSCO), Applied Materials (NASDAQ:AMAT), Palo Alto Networks (NASDAQ:PANW), Deere (NYSE:DE), ZIM Integrated Shipping Services (NYSE:ZIM), and JD.com (NASDAQ:JD).

In addition to earnings, retail sales and housing data are highlights of the economic calendar, and Fed Chair Jerome Powell speaks at a conference on Tuesday.

Regardless of which direction the market goes, below we highlight one stock likely to be in demand and another which could see further downside.

Remember though, our timeframe is just for the upcoming week.

Stock To Buy: Target

Target Corporation (NYSE:TGT) could see increased buying activity in the days ahead as the retail heavyweight is expected to deliver a beat on earnings and revenue growth when it releases its latest financial results ahead of the U.S. market open at 6:30AM ET on Wednesday, May 18.

According to InvestingPro+, consensus calls for the Minneapolis, Minnesota-based big-box retailer to post earnings per share of $3.06 for the first quarter, down roughly 17% from EPS of $3.69 in the year-ago period, mostly due to challenging year-over-year comparisons.

Revenue is expected to climb about 1% year-over-year to $24.4 billion, benefitting from strong growth in its private and exclusive brands, as well as its continuing efforts to add faster order pickup and shipping options.

TGT Earnings View
TGT Earnings View

Source: InvestingPro

Perhaps of greater importance, investors will monitor growth in Target’s total comparable sales, which include sales both online and at stores open for at least a year. Target said the key metric rose by 8.9% in Q4, with digital comparable sales growing 9.2%, and physical comparable store sales increasing 8.9%.

Beyond the top-and-bottom line numbers, Target’s outlook for the rest of the year will be in focus as the discount retailer deals with ongoing macroeconomic headwinds, such as higher costs, supply chain disruptions, and labor shortages.

Commentary from executives regarding the health of the U.S. consumer will also be scrutinized amid record-high inflation, rising gas prices, and recession concerns.

When the company reported Q4 earnings on Mar. 1, management provided strong guidance, saying they expect growth to continue, even after the COVID-19 pandemic turbocharged its business.

Investors bid up the stock in response, sending TGT shares up by more than 12%.

TGT Daily Chart
TGT Daily Chart

TGT ended Friday’s session at $219.73, earning the retailer a valuation of $101.6 billion. Shares, which are down 5% year-to-date, are approximately 18% below their all-time high of $268.98 reached in November 2021.

Stock To Dump: Twitter

Twitter (NYSE:TWTR) shares are expected to suffer another volatile week, with more wild swings on the horizon, as investors react to fresh developments surrounding Elon Musk’s controversial $44 billion agreement to buy the social media platform.

The latest news in the saga came after Musk tweeted on Saturday that Twitter’s legal team accused him of violating a nondisclosure agreement by revealing that the sample size for how the company estimates automated users and fake accounts was 100.

On Friday, the Tesla (NASDAQ:TSLA) CEO tweeted that his deal to acquire the company was “temporarily on hold,” pending details on the number of spam and bot accounts on the platform.

That tweet initially sent TWTR shares down more than 20% on Friday morning, before trimming losses to end the session off by about 10% after Musk said in a follow-up tweet that he was “still committed” to the acquisition.

Twitter CEO Parag Agrawal also weighed in, tweeting "While I expect the deal to close, we need to be prepared for all scenarios."

The estimated number of spam accounts on the microblogging site has held below 5% since 2013, according to regulatory filings, prompting some to speculate that Musk is angling for a better price—or to even walk away from the deal—given the sharp reset in valuations across the tech space in recent weeks.

In fact, the spread between the offer price and the value of Twitter shares has widened dramatically, implying less than a 50% chance of completion.

Taking that into account, we expect the wild swings in TWTR to continue in the week ahead.

TWTR Daily Chart
TWTR Daily Chart

TWTR shares ended at $40.72 on Friday, a steep discount to the $54.20 per share acquisition price. At current levels, the San Francisco, California-based microblogging platform—which is down 5.8% year-to-date—has a market cap of $31 billion.

Interested in finding your next great idea? InvestingPro+ gives you the chance to screen through 135K+ stocks to find the fastest growing or most undervalued stocks in the world, with professional data, tools, and insights. Learn More »

1 Stock To Buy, 1 To Dump When Markets Open: Target, Twitter
 

Related Articles

1 Stock To Buy, 1 To Dump When Markets Open: Target, Twitter

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Tom Stafford
Tom Stafford May 18, 2022 17:11
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oops
Kwaku Boakye
Kwaku Boakye May 16, 2022 13:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how can I start
Nuno Sacramento
Nuno Sacramento May 15, 2022 19:34
Saved. See Saved Items.
This comment has already been saved in your Saved Items
controversial. oh the bias.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email