Bulls Circle Target Stock Ahead of Next Week's Q3 Report

Target Corp (NYSE:TGT) is gearing up to report its third-quarter earnings before the open on Wednesday, Nov. 18. Zacks Consensus Estimates call for an earnings of $2.04 per share, representing a 14.61% year-over-year improvement. Revenue is expected to come in at $26.38 billion, an annual growth of 4.39%.

TGT has been flirting with a rebound toward its August highs, clawing its way to a 64% year-to-date gain and testing support at the $160 floor. The shares pivoted off the ascending 120-moving average late last month, with added backing at the historically supportive $145 to $150 area.

The stock has a mixed post-earnings history, finishing the following trading session higher five times in 12 quarters, averaging an 8.5% move, regardless of direction. This time around, the options pits are pricing in a smaller-than-usual 6.2% post-earnings move. 

Calls have been bought at an accelerated rate. TGT sports a 10-day call/put volume ratio of 2.42 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 80% of all other readings from the past year, hinting at a much healthier-than-usual appetite for bullish bets of late.

The equity has tended to underperform options traders' volatility expectations, however. In fact, per its Schaeffer's Volatility Scorecard (SVS) 8 out of 100, this indicates TGT makes a prime selling candidate.