Should I invest in Target Corporation? (2024)

Should I invest in Target Corporation?

Target Corporation - Buy

Is it a good idea to invest in Target?

TGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.17. This compares to its industry's average Forward P/E of 29.25. TGT's Forward P/E has been as high as 19.21 and as low as 12.31, with a median of 15.02, all within the past year.

Is Target Corp a good stock to buy?

TGT Stock Forecast FAQ

Target has 3.62% upside potential, based on the analysts' average price target. Is TGT a Buy, Sell or Hold? Target has a conensus rating of Moderate Buy which is based on 20 buy ratings, 10 hold ratings and 0 sell ratings.

Is TGT a good long-term investment?

TGT boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Its bottom-line is projected to rise 5% year-over-year for 2025, while Wall Street anticipates its top line to improve by 0.7%.

Which is better to invest Target or Walmart?

Typically investors will look for a current ratio of at least 1 or higher, but because retailers have so much money tied up in inventory, their current ratios tend to be lower. Walmart has a current ratio of 0.83, while Target comes in at 0.86, putting both companies on roughly equal footing.

Is Target financially stable?

Despite a decline in revenues due to soft demand in discretionary categories, disciplined cost and inventory management contributed to a meaningful improvement in earnings. The company remains fundamentally sound and financially stable, demonstrating the capacity to sustain dividend payments.

What is the future of Target?

Target will continue investing in its stores-as-hubs model during the next decade with plans to: Build more than 300 new stores to reach new guests with a shopping experience that's welcoming, convenient and fun, whether they're shopping the aisles or using same-day services.

Does Target have a good dividend?

Target's current payout ratio is 49%, meaning it paid out 49% of its trailing 12-month EPS as dividend. Earnings growth looks solid for TGT for this fiscal year. The Zacks Consensus Estimate for 2024 is $9.39 per share, representing a year-over-year earnings growth rate of 5.03%.

Is Target Corporation profitable?

Target's net income for the three-month period rose by nearly 58% to $1.38 billion, or $2.98 per share, from $876 million, or $1.89 per share in the year-ago quarter. That was significantly higher than Target's forecast range of between $1.90 and $2.60 per share.

Is Target a dividend paying stock?

Target is a dividend paying company with a current yield of 2.65% that is well covered by earnings. Next payment date is on 10th June, 2024 with an ex-dividend date of 14th May, 2024.

Is Target stock Undervalued?

Over the past 52 weeks, TGT's P/CF has been as high as 13.84 and as low as 7.72, with a median of 10.14. Value investors will likely look at more than just these metrics, but the above data helps show that Target is likely undervalued currently.

Which stocks are a strong buy?

What is the Target stock price forecast for 2025?

How is Target doing financially?

Full-year total revenue of $107.4 billion decreased 1.6 percent compared with 2022, reflecting a 1.7 percent decline in sales partially offset by a 5.1 percent increase in other revenue. Fourth quarter operating income margin rate was 5.8 percent in 2023 compared with 3.7 percent in 2022.

Why is Target more profitable than Walmart?

When comparing the two from a financial perspective, Target is slightly more profitable than Walmart. Walmart's lower gross profit margin and net profit margin can be explained by its everyday low price strategy which features a low price guarantee policy.

Why is Target so much nicer than Walmart?

From the availability of staff, cleanliness of the store, and plentiful checkouts, Target is top-notch in my book. Moving through Target was also easier compared to Walmart, with less dodging of shopping carts and little to no bottle-necking from store staff restocking shelves.

Is Target struggling financially?

Comparable sales dipped 4.4%, a continuation—albeit slowing—of a downward trend for Target. Things aren't likely to turn around soon. The company expects a 3-5% sales decline in 2024's first quarter, according to its fourth-quarter earnings report.

How is Target doing in 2024?

The Minneapolis-based firm is expected to report a 4.6% drop in comparable sales for the holiday quarter and a 3.6% decline for the year, according to LSEG estimates. Looking ahead, its 2024 sales are expected to rise by about 1%, according to LSEG.

Is Target a good stock to buy in 2024?

Fair Value Estimate for Target

Our fair value estimate implies a forward 2024 adjusted price/earnings ratio of 15.6 times and enterprise value/adjusted EBITDA of 8.8 times. We expect fiscal 2023 and 2024 to be choppy as economic uncertainty and persistent inflationary headwinds pinch consumer wallets.

Who owns Target?

The ownership structure of Target (TGT) stock is a mix of institutional, retail and individual investors. Approximately 65.54% of the company's stock is owned by Institutional Investors, 0.97% is owned by Insiders and 33.49% is owned by Public Companies and Individual Investors.

Why is Target stock so high?

Target stock surged to its highest level in almost a year Tuesday, as investors cheered a huge rise in profits that beat Wall Street expectations and shrugged off the retail giant's first sales drop in years.

How successful is Target today?

The company did well to maintain progress after experiencing huge year-on-year growth in 2020 and 2021. This growth resulted in Target achieving its highest net sales total in 2022, reaching roughly 107.6 billion U.S. dollars. The company's record sales were matched by record store numbers that year.

Is Target dividend safe?

A safe and reliable dividend

Target has raised its dividend for 52 consecutive years.

What is the best dividend company to invest in?

What stock pays the highest dividend?