We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
READ ALSO Jim Cramer on Microsoft and Other Stocks and Jim Cramer’s Best Performers List: Top 10 Stocks
Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Target Corporation (NYSE:TGT)
Target Corporation (NYSE:TGT) is set to report its third-quarter earnings on November 20. Ahead of the report, Cramer said:
“Target intrigues at $152, that’s down big from $188, almost 3% yield. People are so worried about tariffs that you might want to wait and see with this one.”
Target (NYSE:TGT) is a general merchandise retailer in the U.S. offering a wide range of products, including apparel, beauty and personal care, groceries, electronics, home goods, and seasonal items. For the third quarter, it has forecasted a modest increase in comparable sales, expecting a growth range of 0 to 2%. In terms of earnings, the company anticipates GAAP and adjusted EPS to fall between $2.10 and $2.40.
Although the overall sales outlook for the year remains in line with earlier expectations, the company anticipates that the increase in comparable sales will likely come in at the lower end of its projected range. Despite this, strong performance during the first half of the year prompted the company to raise its full-year EPS guidance. The company expects full-year GAAP and adjusted EPS to be between $9.00 and $9.70, up from a previous range of $8.60 to $9.60.
On November 14, Evercore ISI analyst Greg Melich issued a negative tactical outlook on Target (NYSE:TGT) ahead of its earnings report on November 20, anticipating a potential decline in the stock to $140. As a result, the firm added the stock to its “Tactical Underperform” list.
Evercore expects a slowdown in Q3 sales trends, leading to an estimated Q3 EPS of $2.28, slightly below the consensus estimate of $2.30. While these figures are still within the upper range of the company’s guidance provided in August, the analyst expressed concerns that the decelerating comparable sales growth could continue into the fourth quarter. Evercore currently maintained an In Line rating on the stock, with a price target of $165.
Overall TGT ranks 8th on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.