Jim Cramer Says Target “could Roar If It Can Demonstrate Any Sort Of Turnaround”

Target Corporation (NYSE:TGT) is one of the stocks Jim Cramer discussed after the Fed rate cut. Target was one of the companies mentioned by the Mad Money host while discussing the effect of rate cuts on retailers. He said:

“More broadly, retailers work when the Fed cuts, always have, always will. Here I’m thinking of companies like TJX, which underperformed today, Walmart, even Target, which could roar if it can demonstrate any sort of turnaround.”

Target Corporation (NYSE:TGT) is a retailer that sells clothing, beauty items, groceries, electronics, home goods, and everyday essentials. Cramer discussed the stock during the November 20 episode and remarked:

“Next up, Target, oh jeez, this is a tough one. Target also reported yesterday, and this ailing big box retailer delivered yet another dispiriting set of numbers. We’re talking about a slight revenue miss, a nasty 2.7% decline in same-store sales, and a modest 7 cents earnings beat off a $1.71 basis. On top of that, Target slashed the high end of its full-year earnings forecast.

Previously, they were talking about 7 to 9 bucks earnings per share. Now, they say it’ll be 7 to 8 bucks. Although given that Wall Street was only looking for $7 and 24 cents… It’s not a total surprise… Where’s the weakness coming from? Target said that its food and beverage and hard lines categories delivered comparable sales growth in the quarter, but that was offset by, I’m quoting here, ‘continued softness across the broader discretionary portfolio.’ That’s what I used to love about Target. It used to be great.

Plus, Target’s traffic was down 2.2%. Their customers are spending less with each visit as their average transaction amount declined by 0.5%. Now, Target’s got a new CEO waiting in the wings with current chief operating officer Michael Fiddelke taking the reins in February. He’s already talked about the need to improve the merchandise assortment, provide a more consistent shopping experience, use technology to breathe some life into the business. But based on what we saw from Target yesterday, let’s just say he’s got his work cut out for him.”

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Disclosure: None. This article is originally published at Insider Monkey.