Stock Analysis & Ideas

Target Stock: Website Traffic Does Not Indicate a Strong Q2

Story Highlights

The TipRanks Website Traffic tool indicates weak results for Target in the second quarter. Persistently high inflation levels and shaky sentiments are the major factors contributing to muted activity on the company’s website.

Retail store chain operator Target Corporation (NYSE: TGT) is slated to report its second-quarter results on August 17, 2022. The TipRanks website traffic tool indicates that the company will deliver muted second-quarter results.

Target’s Website Traffic Data is Disappointing

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Target’s performance this quarter.

However, the Target website recorded a 4.65% monthly fall in global visits in July, compared to June. Moreover, Target website traffic decreased by 3.57%, compared to the previous year.

Consequently, the company’s declining website traffic is hinting toward a weak set of numbers for the second quarter.

With consumer sentiments hurt due to rising inflation levels and an impending recession on the horizon, big-box retailers like Target have been hit hard. Consumers are curbing their purchases and, as a result, website traffic for a retail giant like Target is also down.

In fact, Target’s fellow retail major, Walmart (WMT), has slashed its profit outlook amid efforts to cut prices and clear clothing and other unsold products from its shelves.

Learn how Website Traffic can help you research your favorite stocks.

What Are Analysts Saying About Target’s Q2 Results?

Coupled with the muted website traffic, analysts are also hinting toward a weak second quarter for Target.

Analysts expect Target to report earnings per share (EPS) of $0.79 in the second quarter. This represents a massive decline of 78.3% from the year-ago quarter. In terms of quarterly revenues, analysts expect the same to be about $26.06 billion, which represents a modest growth of 3.9% from the previous year.

Is Target a Good Buy Now?

Overall, the consensus among analysts for Target stock is a Moderate Buy based on 19 Buys and nine Holds. The TGT average price target of $184.82 implies an upside potential of 6.6% from current levels. Shares have declined 33.1% over the past year.

Final Thoughts

Target’s dwindling website traffic is alluding to not-so-enthusiastic second quarter results for the retail giant. Notably, only a shift in consumer sentiments marked by dropping inflation levels and positive consumer credit numbers can bring back growth for the company.

However, the company’s recent measures to tackle inflation, such as reducing inventory levels, adding storage capacity near U.S. ports, and optimizing supply chains, can provide support to its margins.

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