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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • Target and Other Retailers Post Decent Numbers, Bolster Markets,$tgt,$hd,$wmt,$bj 0 comments
    Nov 17, 2010 12:31 PM | about stocks: TGT, HD, WMT, BJ
    Go to ValuEngine.com
    November 17, 2010
    ATTENTION Advanced Investors and Finance Professionals:
    If you are reading this you should download ValuEngine Institutional Software to see how VE’s powerful quantitative tools can increase your productivity and effectiveness.

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

    Stay on Target

    Target and Other Retailers Post Decent Numbers, Bolster Markets

     Yesterday's sell off may have been a one time move as so far today market's are holding flat.  Investors have been reassured by positive numbers from retail giants Wal-Mart (NYSE:WMT), Target (NYSE:TGT), BJ's Wholesale (NYSE:BJ), and Home Depot (NYSE:HD) over the past few days. 

      Target posted a 23% gain in earnings for q3 and saw a bit of a pop as a result.  Our model rates Target a BUY.  Based on the information we have gathered and our resulting research, we feel that Target has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE company size, volatility and price/sales ratio.

      Based on available data as of Nov. 17, 2010, we believe that Target should be trading at $65.04. This makes Target 17.30% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For Target, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of $3.74, forecasted EPS for the next four quarters of $4.21, and correlations to the 30- year Treasury bond yield of 3.92%.

      Below, we include VE data for the above mentioned retailers.

     Ticker         Company Name  Mkt Price Valuation(%) Forecast 1-Mon Retn(%) Forecast 1-Yr Retn(%) Last 12-Mon Retn (%) P/E Ratio
    TGT TARGET CORP 53.79 -17.3 1.77 5.77 8.56 14.37
    WMT WAL-MART STORES 54.26 -0.23 1.81 6.06 4.37 13.84
    BJ BJ'S WHOLESALE 46.17 25.26 1.14 0.22 24.72 18.63
    HD HOME DEPOT 31.71 3.04 1.59 4.75 18.32 16.76

      Subscribers can check out the latest figures on the Retail Wholesale Sector from our models HERE.

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

    Market Indices Data
      Latest Change YTD
    Dow Jones
    11,035.60 12.08 5.83%
    NASDAQ Composite
    2,483.39 13.55 9.44%
    Russell 2000
    707.82 2.48 11.63%
    S&P 500
    1,182.27 3.93 6.02%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    57.08%
    Stocks Overvalued
    42.92%
    Stocks Undervalued by 20%
    25.78%
    Stocks Overvalued by 20%
    15.69%

     

    ValuEngine Sector Overview
    Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
    Basic Materials -3.04% 0.16% 18.87% 10.73% overvalued 49.54% 32.31
    Oils-Energy -3.00% 2.31% 8.34% 8.52% overvalued 34.23% 41.67
    Multi-Sector Conglomerates -2.46% 0.73% 16.04% 4.02% overvalued 27.30% 32.05
    Transportation -1.69% -0.72% 17.20% 0.09% undervalued 23.35% 39.10
    Auto-Tires-Trucks -3.01% 2.31% 36.94% 0.21% undervalued 39.05% 34.00
    Finance -2.05% -0.09% 13.23% 0.49% undervalued 16.26% 29.35
    Utilities -1.79% -0.51% 3.94% 1.13% undervalued 15.08% 26.84
    Retail-Wholesale -1.80% 1.74% 12.36% 1.69% undervalued 47.58% 24.75
    Industrial Products -2.14% 0.96% 13.81% 1.71% undervalued 22.37% 26.37
    Consumer Staples -1.58% 0.93% 4.91% 1.91% undervalued 13.03% 21.76
    Business Services -1.89% 0.93% 5.47% 5.04% undervalued 14.05% 28.55
    Computer and Technology -1.78% 0.29% 19.51% 5.06% undervalued 25.32% 39.23
    Aerospace -1.46% -3.70% 9.58% 6.23% undervalued 19.39% 18.68
    Consumer Discretionary -1.88% -0.04% 15.04% 6.42% undervalued 19.75% 29.84
    Construction -2.55% 1.54% -0.06% 10.96% undervalued -0.35% 37.28
    Medical -1.42% 1.19% 10.72% 11.65% undervalued 16.77% 33.05

     

     
     
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    Disclosure: no positions
    Themes: retailers Stocks: TGT, HD, WMT, BJ
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