Stock to Sell #4 – Target (TGT)
Retail giant Target (TGT), which has nearly 1,800 stores, reported disappointing fiscal third-quarter results in November, missing revenue expectations and showing a 46% decline in profits. It also lowered its outlook for the full year. Consensus estimates for fiscal 2014, ended in January, and fiscal 2015 have fallen substantially in the past two months to $3.62 and $4.70, respectively.
Technically TGT violated its long-term bullish support line in September, and a reaction rally in October and November failed at the 200-day moving average (red line). The chart flashed a death cross (50-day moving average crossed through the 200-day moving average) in September, a very bearish sign, and MACD is currently on a sell signal.
High selling volume has restricted rallies to mere bounces, and the stock is now failing at the 50-day moving average. Sell TGT at the market.