Target $TGT Results Misinterpreted - 5 Things to Know - #5 - August 23rd, 2024 скачать в хорошем качестве

Target $TGT Results Misinterpreted - 5 Things to Know - #5 - August 23rd, 2024

Gary Brode of Deep Knowledge Investing and Robb Fahrion of Flying V Group discuss the 5 Things to Know in Investing This Week: The Uranium Market is Out of Balance Issue -Target $TGT beats revenue estimates. The story is somehow lower prices despite gross margin gains. Future growth guidance is quietly lowered. DKI Summary: Target $TGT reported Q2 earnings of $25.5 billion, surpassing the expected $25.2 billion. The media widely interpreted the growth in earnings to price cuts. This quarter saw an increase in both in-store traffic and discretionary sales. However, like Walmart $WMT and Home Depot $HD, Target remains cautious about the remainder of the year, projecting guidance in the range of 0-2%. Does that mean everything is in good shape there? DKI Takeaway: Target's underlying earnings contain several inconsistencies that have not been accurately covered by the media. First, while there were claims of price reductions, company gross margins have been growing and were above the mark from last year. Another significant factor in their revenue growth is Target was involved in a controversial social issue last year, which negatively impacted sales, leading to easier comparisons this year. 2Q revenue remains below 2022 levels. Target's official guidance was 0% - 2%, but the company just offered commentary that they’d be at the lower end of that range meaning 0% - 1% is the real mark. When we compare this barely-positive growth to the current inflation rate of 2.9%, it looks like Target is selling fewer goods for higher prices. Target serves as another example of the bifurcation in the economy, where inflation boosts dollar-denominated earnings rather than genuine economic growth. Your links: This week's written version of the 5 Things with graphs: https://deepknowledgeinvesting.com/we... Deep Knowledge Investing Subscription Page: https://deepknowledgeinvesting.com/we... Flying V Group: https://www.flyingvgroup.com/ #deepknowledge #deepknowledgeinvesting #investingnews #garybrode #robbfahrion #flyingvgroup #dki #investmentresearch #investmentknowledge #investmentstrategy #investingstrategies #TargetEarnings #TGTResults #RetailAnalysis #InflationImpact #EarningsMisinterpretation #RetailGrowth #EconomicBifurcation #GrossMargins #DiscretionarySpending #RetailSector #InflationVsGrowth #MarketGuidance #EconomicTrends #RetailStocks