1 Stock to Buy, 1 Stock to Sell This Week: Snowflake, Target
Source: InvestingPro
For the April-ended quarter, analysts expect adjusted profit to rise an impressive 51% year-over-year to $0.21 per share, with revenue projected to increase 22% to just over $1 billion. This growth trajectory demonstrates Snowflake's continuing ability to expand its enterprise customer base despite broader technology spending concerns.
Once a data analytics pure-play, Snowflake has transformed into a comprehensive cloud data platform, capitalizing on the AI and big data megatrends. Its Cortex AI suite is gaining significant traction, empowering businesses to harness predictive analytics. Additionally, analysts have noted improving adoption of Snowpark, the company's developer framework that expands use cases beyond traditional data analytics.
Given these dynamics, Snowflake’s management is well positioned to deliver strong sales guidance for the current quarter and beyond as it benefits from the strong upward trend in AI adoption rates, customer retention, and strategic growth initiatives.
Source: Investing.com
Market participants predict a sizable post-earnings swing in SNOW stock, with a possible implied move of 10.8% in either direction according to the options market. Shares – which have staged an impressive rally off the April 7 low of $120.10 - closed at $183.08 on Friday.
Despite concerns about its valuation, the technical picture for Snowflake is exceptionally strong, with "strong buy" signals across most short- and long-term timeframes. With an RSI of 72.5, the stock is in overbought territory—typically a cautionary sign, but in the context of pre-earnings momentum and strong fundamentals, this suggests powerful buying pressure.
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Stock to Sell: Target
In contrast, Target faces a much more difficult environment as it prepares to release its Q1 financial results on Wednesday at 6:30AM ET. According to the options market, traders are pricing in a swing of 10.4% in either direction for TGT stock following the print.
Analyst sentiment has deteriorated significantly ahead of the report, with InvestingPro data showing all 22 analysts covering Target reducing their profit estimates - a unanimous expression of growing concern.
Source: InvestingPro
Wall Street projects earnings of $1.69 per share, falling nearly 19% from a year earlier, while revenue is anticipated to decline by about 1% to $24.4 billion. These projections indicate Target is struggling to maintain both top-line momentum and profitability in the current retail environment.
The big-box retailer is facing a plethora of headwinds, including slowing store traffic, reduced spending on discretionary goods, as well as potential margin pressure from proposed tariffs that could impact its supply chain and product costs.
Further complicating Target's situation is customer response to the company's diversity, equity, and inclusion (DEI) initiatives, with some analysts pointing to boycott activity affecting store traffic.
As such, I believe CEO Brian Cornell is likely to deliver cautious full-year guidance due to a challenging operating environment, competitive landscape, and concerns over potential tariffs.
Source: Investing.com
TGT stock –which fell below $100/share for the first time since April 2020 earlier this month– ended Friday’s session at $98.58. Shares, which are trading below their key moving averages, are down a whopping 27.1% in 2025, significantly underperforming the broader market.
It should be noted that Target currently has an InvestingPro ‘Financial Health Score’ of 2.5 out of 5.0 due to lingering concerns over weakening profit margins and spotty sales growth.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
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