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Market Data Table

Target's Turnaround Hits Bullseye

May 20, 2026

Tuesday's Markets
S&P 500 7,403 (-0.67%)
Nasdaq 25,871 (-0.84%)
Dow 49,364 (-0.65%)
Bitcoin $76,858 (-0.28%)

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Chart showing Target's quarterly revenue over the past five years, starting at $25 billion in the second quarter of 2021, staying mostly flat except for a bump up in revenue to around $30 billion every first quarter, and ending at $30 billion in the first quarter of 2026.

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1) Retail Earnings in the Spotlight

Target (NYSE:TGT) beat first-quarter expectations, with same-store sales up 5.6% year over year (YOY) -- positive for the first time in five quarters and following a sales fall in Q4. Management raised the outlook, guiding for full-year net sales growth of 4%. The stock gained 3% in early trading.
Lowe's (NYSE:LOW) first-quarter sales hit $23.1 billion, up 10.5% from the same period last year, as CEO Marvin R. Ellison spoke of "strong spring execution and continued momentum in Pro, Appliances, Online, and Home Services." A cautious full-year outlook based on a weak housing market led to an early 2% stock dip.
TJX (NYSE:TJX) -- 3% behind the S&P 500 since a 2024 Stock Advisor recommendation by Team Hidden Gems -- releases results this morning, following a 9% rise in net sales YOY in the final quarter of fiscal 2026. Investors should keep an eye on plans for $2.75 billion in stock repurchases in fiscal 2027.

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2) Google's AI Takes the Stage

Alphabet (NASDAQ:GOOG) rolled out the biggest update to its search bar in 25 years at its annual Google I/O conference yesterday. Powered by Gemini 3.5 Flash AI, the new-look search is being rolled out immediately. Featuring artificial intelligence (AI) agents and AI-generated interface tools, it expands the range of media we can search for -- photos, videos, files, and more.

Gemini now has 900 million monthly users: CEO Sundar Pichai said the user count has more than doubled from around 400 million this time last year. He added that power users could save money using Google AI, which it's claimed matches top-end performance at up to a third of the cost of competitors.
"Our eighth-generation TPUs": Google also announced two new AI tensor processor units: the TPU 8i, designed for running AI software, and the TPU 8t, targeted at training models.

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3) Nvidia's Earnings to Hit the Headlines

Nvidia's (NASDAQ:NVDA) hotly anticipated first-quarter earnings will be with us after market close, as the leading AI chipmaker -- recommended by both Team Hidden Gems and Team Rule Breakers -- faces increasing competition from global rivals. Watch for Blackwell and Rubin platforms ramping up, as analysts predict around $79 billion in Q1 revenue.

Zhenwu M890 delivers 3 times the performance: Launching its newest AI processor, Chinese competitor Alibaba (NYSE:BABA) put it well ahead of the current Zhenwu 810E -- with 144 gigabytes of graphics processing unit (GPU) memory and greatly enhanced bandwidth in the new chip. The company's next-generation large language model (LLM), Qwen3.7-Max, should be released soon.
Bigger chips mean faster communication: Nvidia also faces competition from Cerebras (NASDAQ:CBRS), after last week's initial public offering (IPO) highlighted its large full-wafer technology. AMD (NASDAQ:AMD) -- a Stock Advisor rec from Team Rule Breakers -- also plans to launch a rival server system later in the year.

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4) Team Rule Breakers' Recs to Watch on Wednesday

Hasbro (NASDAQ:HAS) edged up around 1% in pre-market trading, as the toys and games maker posted Q1 earnings of $1.47 per share -- against a $1.13 estimate. Strong demand for digital games lay behind the gains, as CEO Chris Cocks said Hasbro is "on track to grow the entire segment for the full year 2026."
e.l.f. Beauty (NYSE:ELF) will close off fiscal 2025 with a Q4 report after the market closes. Recommended by both Team Hidden Gems and Team Rule Breakers, the cosmetics and skincare company has already produced 28 consecutive quarters of net sales growth, though organic growth is slowing.
Intuit (NASDAQ:INTU) reveals Q3 results this afternoon after beating top- and bottom-line estimates in Q2. Expansion of AI-powered services should help boost profitability for the full year.

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5) Your Take

Are there some companies or industries you would never invest in for personal reasons?

Share your explanation with friends and family, or become a member to hear what your fellow Fools are saying!

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