The poor retail sector, TGT you looked so good before, lapping WMT , chasing AMZN , but then the 'rona.
TGT still has great long term potential, current Mr Market is pricing in a -1%YoY growth rate on DCF to get to a $121 price point, 0% gets you $131, and current EBIT valuations have you around the $94/98 point. This should lag in the tight zone till earnings . If we get a "bad" number, let it sell-off, look for the $110/100 point, and pick up a few shares knowing that the world is not coming to an end.
Really poor R/R ratio right now before earnings (~0.5), but when you get past earning with a nice drop you can turn that into a number in the ~3.5 to 7 range. Technicals, charts, VOLUME! and fundamental analysis = how to stay in the market.
TGT still has great long term potential, current Mr Market is pricing in a -1%YoY growth rate on DCF to get to a $121 price point, 0% gets you $131, and current EBIT valuations have you around the $94/98 point. This should lag in the tight zone till earnings . If we get a "bad" number, let it sell-off, look for the $110/100 point, and pick up a few shares knowing that the world is not coming to an end.
Really poor R/R ratio right now before earnings (~0.5), but when you get past earning with a nice drop you can turn that into a number in the ~3.5 to 7 range. Technicals, charts, VOLUME! and fundamental analysis = how to stay in the market.
Commento:
