“Now, Target is facing another reputational hit. The American Federation of Teachers (AFT) says it wants its 1.8 million members to avoid Target for back-to-school shopping, a move aimed at the company’s response to federal immigration enforcement actions in Minneapolis, Minnesota.”

“That matters because Target has already admitted that a prior boycott tied to its DEI shift hurt sales. If this latest effort gains traction, it could land at exactly the wrong time for a turnaround that is still in progress.”

“For the current quarter, Target is expected to post earnings of $1.34 per share, indicating a change of +3.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.4% over the last 30 days.”

“Many business analysts have suggested Target boycott drove consumers away, leading to a fall in earnings and a decline in year-over-over foot traffic. Target's market valuation is around $54 billion today. That's less than half of its almost $130 billion valuation in August 2021.”

“Target is likely the most aggressive option on the list. It has a historically high dividend yield of 3.8%. Despite a recent stock rally, the shares are down more than 50% from their 2021 highs.”

“Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations.”

“But stocks like: TGT -55% are in the midst of large drawdowns”

“The only thing that concerns me from a technical perspective... higher price action on weaker momentum. We're overbought as we make a new swing high in January. We are not overbought as we make a new high in February. So higher highs, weaker momentum. That's called a bearish momentum divergence.”