Target Stock: Too Cheap to Ignore?
Not many retailers can match Target (NYSE: TGT). The company is one of just a handful of multi-category retailers in the U.S., along with Walmart and Costco Wholesale, selling everything from food and beverages to toys, electronics, apparel, home goods, and health and beauty products, among others. Target also has stores in all 50 states, has store models that fit the urban, suburban, and rural markets, and appeals to all income demographics.Unfortunately, that balanced approach to retail hasn't been enough to make Target successful lately. The stock has struggled amid weakness in consumer discretionary spending and internal problems like an increase in theft. Over the last three years, the stock is trading down 49%, even as peers like Walmart and Costco have outperformed. Target shares sold off further following its latest quarterly update last Tuesday. Better-than-expected results weren't enough to overcome a weak February and management's warnings about the effect of tariffs. In the fourth quarter, comparable sales rose 1.5%, driven by digital comp sales growth of 8.7%. Revenue was down 3.1% as it lapped a quarter with an extra week in the calendar to $30.92 billion, but that was ahead of the consensus at $30.38 billion. Continue reading
Not many retailers can match Target (NYSE: TGT). The company is one of just a handful of multi-category retailers in the U.S., along with Walmart and Costco Wholesale, selling everything from food and beverages to toys, electronics, apparel, home goods, and health and beauty products, among others. Target also has stores in all 50 states, has store models that fit the urban, suburban, and rural markets, and appeals to all income demographics.
Unfortunately, that balanced approach to retail hasn't been enough to make Target successful lately. The stock has struggled amid weakness in consumer discretionary spending and internal problems like an increase in theft. Over the last three years, the stock is trading down 49%, even as peers like Walmart and Costco have outperformed.
Target shares sold off further following its latest quarterly update last Tuesday. Better-than-expected results weren't enough to overcome a weak February and management's warnings about the effect of tariffs. In the fourth quarter, comparable sales rose 1.5%, driven by digital comp sales growth of 8.7%. Revenue was down 3.1% as it lapped a quarter with an extra week in the calendar to $30.92 billion, but that was ahead of the consensus at $30.38 billion.
