On Target for Growth

NEW YORK (TheStreet) -- Today the investment community is doing what Jim Cramer calls "schnitzeling" when it comes to Target (TGT) , a company I've written about in recent months. "Schnitzeling," loosely translated, means buying some shares in anticipation of some inevitable news -- in this case TGT's earnings release Wednesday.

The thesis here could be titled, "Anything Wal-Mart (WMT) Can Do, I Can Do Better."

TGT's last reporting quarter showed a trailing 12-month (TTM) operating margin of 7.3% and a profit margin of 4.2%. WMT in its last quarter had TTM operating margin of 5.93% and a profit margin of 3.62 %. Both TGT and WMT have nearly the same dividend yield, and the return on equity (TTM) "score" was WMT, 22.42% versus TGT's 19.10%.

It's been fun to watch, listen and learn from the conference calls and earnings reports of these two titans of big-box-store merchandising. Both companies have remarkable leadership and enviable track records including a share-holder friendly attitude.

TGT's one-year price movement including the $1.20 uptick earlier Tuesday is relatively impressive, especially when you look back at its trailing 12-month revenue-per-share history, as you'll see on the chart below.

TGT data by YCharts

After Home Depot's (HD) blow-out earnings report before the market opened Tuesday followed by its nearly 6% price-per-share pop, optimism is running high for Target's earnings results.

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Can TGT meet or beat analysts' estimates for last quarter? The answer to that question is a multi-million-dollar reaction waiting to unfold Wednesday. When it comes to earnings per share, analysts estimate the increase will be a realistic 3.5%, which is higher than the estimate for the quarter we're currently in. TGT's management will give forward guidance that investors will be eager to hear.