The market has turned dramatically bearish this week as Big Tech has not come to the rescue during earnings week.
Google (GOOG) horrified investors yesterday as it announced big failures in its cloud business. And, after carrying the entire market on its back all year, Big Tech has little to no room for error. GOOG’s report was an error.
However, if other big tech names step up, the market could rebound.
We haven’t seen that yet, though.
Which means we’re stuck in bearish territory.
And it’s times like this where it’s a good idea to look at the lonely, forgotten souls.
Many future winners fall off everyone’s radar during pull-backs, and then everyone’s shocked at their resurgence.
Target (TGT) could be one of those names.
It’s not a momentum stock. It’s not a high-flyer. It’s had all sorts of problems.
But it’s a massive company that people still use (despite its recent controversy).
And when the dust settles, it could come storming back.
Right now, TGT is trading around $110. Its long-term moving average is around $180:
If TGT gets back to that long-term moving average level, that would be a big win.
It’s a value play but it’s a potentially lucrative one.
We’ll keep it on our Don’t Forget list.
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.