Keep an eye on Target (SYM: TGT).
Since late August, the retailer has been trading in a channel between $145 and $160. Now at the lower range of the channel at $148.52, we’d like to see TGT retest $160 again shortly. We’re also seeing oversold conditions on RSI, Williams’ %R and Full Stochastics.
Helping, analysts at Wells Fargo say investors should buy the dip. With an overweight rating, the firm notes that, “The excitement around TGT’s Q2 didn’t last long, as weakening sales data and rising promo headlines have turned investors cautious again. The N/T set-up seems tough either way, but we like the idea of buying weakness into ’25. Remain OW.”
Unfortunately, there are concerns about Crocs’ HEYDUDE brand.
We also have to consider that with the holidays now just around the corner, TGT should be one of the season’s top beneficiaries.
Remember, about 48% of holiday shoppers surveyed by Bankrate, according to USA Today, say they’re planning to start holiday shopping by Halloween.
And, according to eMarketer, U.S. holiday sales are expected to accelerate. “Total US retail sales for November and December 2024 will increase by a healthy 4.8% YoY to reach $1.353 trillion, with ecommerce growing at nearly twice that rate.”
