Is Target Stock a Buy Right Now?

Target (NYSE: TGT) investors have some big questions heading into the retailer's upcoming earnings announcement. Rival Walmart (NYSE: WMT) recently lowered its earnings outlook for a second consecutive time while noting that consumers are rapidly shifting their spending patterns in response to the waning pandemic threat and inflation.

Those changes might factor into a weak short-term earnings outlook from executives when it reports second-quarter earnings (for the quarter ending July 31) on Wednesday, Aug. 17, before the bell. But there are also a few ways that Target might surprise investors with good news that suggests a return to expanding profitability ahead. Let's look at why the retailer might soon be on a stronger growth footing.

We have some midquarter sales trend updates from both Target and Walmart, but not for good reasons. Both companies have warned about a rapidly shifting demand environment in recent weeks due to trends like inflation and a quick tilt away from product categories that were popular in earlier phases of the pandemic.

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Source Fool.com