As earnings season continues, I’d like to lighten the Buy List by exiting two names ahead of their quarterly numbers. First, it’s time to get out of Target (TGT), which is closing in on my $180 target in front of Wednesday’s reporting date. Given the slightly tentative tone around known inventory issues versus consumer spending, let’s avoid any disappointment and move on here.

HP Inc. (HPQ) has been a big winner for us, but again I see some risks when management reveals guidance for the October 2023 fiscal year later this month. This is the kind of market environment that punishes the slightest deviations from perfection. Let’s take what we have and dodge the chance of the wrong numbers taking our profit away.

Sell TGT and HPQ at market price. Inner Circle subscribers, this TGT exit applies to you also.