24/7 Insights
- Target Corp. (NYSE: TGT) reported abysmal financial results after Walmart Inc. (NYSE: WMT) posted excellent ones.
- One analyst has an idea about why Target’s financial performance continues to be so poor.
Target Corp. (NYSE: TGT), the second-largest big-box retailer in the country after Walmart, posted abysmal financial results after Walmart Inc. (NYSE: WMT) posted excellent ones. The news drove its stock down almost 10%. Its share price is down 1% this year, while the S&P 500 is 12% higher. Walmart’s stock is up 24% since the start of the year and recently hit an all-time high.
The company also offered an earnings forecast that was short of expectations, another reason for the sell-off.
There was speculation about why Target’s financial performance continues to be poor. Storch Advisors CEO Jerry Storch told Yahoo! Finance, “Target years ago … made a strategic blunder to basically pull out of the full-service grocery business.” Walmart has the largest grocery business in America. There is a theory that people who shop for groceries at Walmart also often buy other merchandise.
Target’s most recent quarterly financials showed that comparable store sales dropped 3.7%, earnings declined from $2.06 per share to $2.04, and revenue was down 3.2% to $24.1 billion. Management said it hoped to do better.
Walmart’s U.S. comparable store sales rose 3.8% in the most recent quarter. U.S. revenue rose 4.6% to $108.7 billion, while operating income for the unit gained 7% to $5.2 billion.
Nothing Target management said gave investors any comfort.
20 Stores Like Target: Best Alternatives and Affordable Options
∴
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.