Target would publish Second Quarter Results

Retailer Target will report its second quarter financial results before U.S. markets open on Wednesday. Shares are already up 29.4% since the start of the year, and gained 1.7% in afterhours trade on Tuesday, although the stock lost 0.5% in the regular Tuesday session as equities came under broad based pressure.

Wall Street is expecting Target to report same store sales growth of 3% and revenues of $18.3 billion, leading to profits of $1.62 a share. That’s right in the mid-range of Target’s guidance on profits and $0.10 higher than guidance given in May.

As a comparison, the same quarter last year saw same store sales growth of 6.5% on $17.59 billion in revenue and profits of $1.47 a share.

If Target can perform as well as rival Wal-mart did for the second quarter, not only will it be very good for the stock, it will also give investors confidence that the U.S. economy, and consumer spending, remains strong.

Investors already see Target as a strong company that has managed to avoid the onslaught of Amazon’s digital first mindset by offering selection, service and brands that keep customers loyal and returning.

Target shares closed Tuesday at $85.53 a share, and the average analyst price target for the stock is around $90, which could mean upside for the stock could be somewhat limited even if it does report stronger than expected results. That level is only slightly below the all-time intraday high of $90.53 hit on September 10, 2018, giving another reason investors can expect a potential cap on gains.