Target hit the bull's-eye last quarter, here's what could happen next...
| Using Kensho technology, CNBC will surface research and analytic insights designed to create actionable, historical content around market moving events. CUTTING INTO APPLE?
Apple's having a pretty good week.
The iPhone maker became the first company to reach a $2 trillion market cap. The stock has now soared over 60% this year - with shares inching towards $500, though they may not reach that level, at least for now.
Apple announced a 4-for-1 stock split when it released its third quarter earnings report in late July. The iPhone maker will begin trading on a split-adjusted basis on August 31.
This will be Apple's fifth stock split since going public, previously the company split:
While the split is designed to lower the nominal price-per-share, the split-adjusted stock tends to drop even more following the move.
Two weeks after the previous stock splits, shares of Apple tend to lose an average of 5.6%, trading negatively in all four instances. That under-performs the Dow, which tends to be a coin flip - roughly flat in that period, trading positively half the time.
RIGHT ON TGT Target reported a blowout quarter this week – topping every Wall Street forecast for the second quarter. Same-store-sales soared over 24% during the quarter, setting a new record. In response, the stock jumped double digits on Wednesday, finishing 12% higher.
Since 2010, shares of Target have gained at least 10% in a day on 10 other occasions. Two weeks later, the bullish trend tends to continue, with the stock adding another 2.5%, trading positively 80% of the time. The SPRD S&P Retail (XRT) also performs well in those periods – the ETF is a positive trade 80% of the time, adding another 1.85%.
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