Where will the targeted shares be within one year?

The first quarter Target was not good and the management reduced the company in 2025. Leadership.
The company is confronted with tariff winds and weakening consumer demand.
It is probably better for investors to sit aside with Target stocks.
10 shares we like more than Target

Many investors wanted to see as a retail giant Directed tos (NYSE: TGT) The latest quarter would seem, and unfortunately it wasn’t great. The company missed the agreement of analysts on sales and earnings, and the management reduced the company a year.

The Target has been on a rough road over the last few years, and the next 12 months can also be stony. This is where the target stocks can be within one year.

Image Source: Target.

Target sales decreased in 2024, and investors hoped that in 2025 There may be something new for retail giant, but they quickly disappointed when Target reported a 5.7% decrease in the same store in the first quarter.

The company’s sales were $ 23.8 billion compared to the Ago quarter, and spent the Wall Street estimate of a $ 4.2 billion dollars. Meanwhile, non -GAAP (generally accepted accounting principles) reduced income by 36% to $ 1.30 per share.

This earnings do not fall into the estimate of the analysts of $ 1.61 per share, and due to the bad results of the company, the result has sent shares in a quarter, and in recent years it decreased by 39%.

Target’s CEO Brian Cornel, who received an invitation from his earnings, said his company was facing an “exceptionally complex environment”, adding that the company is currently facing several winds, including decreasing consumer confidence and potential tariffs. He added: “I want to be clear that we are not satisfied with this performance, and we are urgently moving to browse this volatility period.”

As a result, Target has reduced its sales guidelines throughout the year, hoping that the low -numeric digits would be reduced by approximately 1%compared to the previous evaluation. This means that investors of any hope had that 2025 There will be a year when the goal experience made sense.

Currently one Target problem is that many customers focus on Walmart;

The bad news is that consumers seem to tighten their belts as they browse the economic uncertainty of tariffs and the potential slowdown of the economy. A recent survey of the University of Michigan found that consumer prospects have fallen to the second lowest level, as Americans expect rates to cause inflation.

Target management under the leadership of this year’s sales decreases in small individual digits – and the estimate of the Wall Street consensus, hoping for 1.7% – the company clearly faces another difficult year.

I think it’s best to distance yourself from targeted stocks. There are still many uncertainty about the economy, as some rates have recently come into effect and others have temporarily suspended. Although the Target management has not yet raised prices and says it will do so as a “very last measure”, it could still later.

In addition, if the rates increase a significant increase in costs for consumers, higher inflation or even economic slowdown, the goal may be even more pressure on sale than the company currently expects.

The goal is not a spiral of death, but to return to growth, we need us users to feel confident again for their costs. And that is not the case yet.

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Chris Aliger has no position in any of the above shares. Motley fool is a position and recommends Target and Walmart. The Motley fool has a disclosure policy.

Where will the targeted shares be within one year? initially released by The Motley Fool

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