Target Stock Plummets Despite Blowout Earnings

Year-over-year, TGT remains up over 54%

Digital Content Manager
Nov 17, 2021 at 10:33 AM
facebook twitter linkedin


The shares of Target Corporation (NYSE:TGT) are plummeting today, last seen down 5% to trade at $253.06, despite the retail name posting a blowout third-quarter earnings and revenue beat. The company attributed the strong results to a better-than-expected 12.7% jump in comparable store sales, but warned of rising costs due to supply chain issues and compensation.

Today's pullback has the security cooling off from its Nov. 15, all-time high of $268.98, though a familiar floor at the $251 mark looks poised to contain these losses. And while the shares have now slipped below support at the 20-day moving average, TGT remains up 54.8% year-over-year.

The brokerage bunch is already optimistic towards Target stock. Of the 20 analysts in question, 16 carry a "strong buy" rating, while four call it a tepid "hold." In addition, the 12-month consensus target price of $283.45 is a 12.5% premium to its current perch.

The security could benefit from a shift in the options pits, which lean bearish. This is per TGT's Schaeffer's put/call open interest ratio (SOIR), which stands higher than 86% of readings from the past year. In simpler terms, these short-term options traders have rarely been more put-biased. 

What's more, Target stock's score on the Schaeffer's Volatility Scorecard (SVS) sits at 91 out of a possible 100. This means the security has often realized higher volatility than the options pits have priced in, which makes it an excellent premium-buying candidate.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners