Target Corporation (NYSE: TGT) was among the stocks Jim Cramer addressed recently, with the television personality pushing back against the market’s negative reaction to its latest earnings report.
Target shares dropped 3.9% following its earnings release, though the stock partially recovered the next day, prompting Cramer to question the severity of the selloff.
Cramer grouped Target alongside Walmart when assessing retailer performance, describing both companies’ quarters as “more or less okay” rather than outright disappointing.
“I hesitate to call these quarters bad, but they clearly, you know, the market didn’t like them,” Cramer said, acknowledging investor frustration while stopping short of endorsing it.
He was direct in his assessment of the post-earnings price action, stating: “I don’t think it’s so bad, but I think, let’s put it this way, I think the declines were excessive.”
Cramer pointed to Target’s earnings results as evidence that the selloff was unwarranted, noting the company delivered what he described as a strong performance on both revenue and profit measures.
Target posted 32% earnings growth alongside same-store sales growth of 5.6%, well ahead of the 2.4% analysts had forecast heading into the report.
The company also raised its full-year revenue growth outlook, lifting the range from 2% to 4%, and indicated that earnings should finish near the high end of its previous guidance range.
“To me, that was a home run and a buy, so I’m not entirely sure why it sold off in response to the quarter,” Cramer said, expressing clear confusion at the market’s negative verdict.
Despite the post-earnings turbulence, Cramer described Target as a turnaround story that is “clearly headed in the right direction,” citing continued operational momentum as a reason for confidence.
He also highlighted Target’s valuation as an additional draw for investors, noting the stock trades at just 15 times this year’s earnings estimate and carries a 3.6% dividend yield.
Cramer closed his comments on the stock with an unambiguous recommendation, saying: “You buy it, okay? You buy it.”
Target is a large-format retailer selling a broad range of products including clothing, beauty items, groceries, electronics, home goods, and everyday essentials across its store network.
