Does Target's Store-as-Hub Model Still Offer a Competitive Edge?
Same-day services, including Drive Up and same-day delivery through Target Circle 360, are tightly integrated into this store-as-hub network. These offerings have shown robust momentum, with same-day delivery growing more than 35% in the last reported quarter. Furthermore, the average "click to deliver" speed improved nearly 20% year over year, with more than 70% of first-quarter digital orders fulfilled within a single day. This infrastructure actively drives higher engagement and supports the digital ecosystem, including Roundel and Target Plus.
Furthermore, ongoing store remodels and commitment to opening about 20 new stores indicate Target's belief in this strategy. While competitors may chase similar omnichannel capabilities, Target's embedded network and operational experience position it to maintain a meaningful advantage in fulfillment speed. Despite recent sales challenges, the store-as-hub model remains integral to Target's growth playbook, offering flexibility, efficiency and relevance in the current retail landscape.
How WMT and BBY Leverage Store-as-Hub Models Compared to TGT
Walmart Inc. WMT continues to strengthen its store-as-hub model, using its expansive store network to power same-day pickup and delivery. Walmart's integration of stores with digital fulfillment remains a key competitive advantage, supporting its U.S. e-commerce orders through store-based operations. Walmart's ongoing investments in automation and last-mile delivery reinforce this strategy, allowing it to compete aggressively on speed and convenience.
Best Buy Co., Inc. BBY also leans heavily on its store-as-hub strategy, utilizing its store fleet to fulfill a significant portion of online orders through same-day pickup and ship-from-store. Best Buy's stores enable rapid fulfillment, while enhancing operational efficiency. Best Buy's ability to leverage physical locations as fulfillment hubs strengthens its competitive positioning.
Target's Price Performance, Valuation and Estimates
Target stock has risen 10.4% over the past three months compared with the industry 's growth of 0.3%.
Target's forward 12-month price-to-earnings ratio of 12.99 reflects a lower valuation compared with the industry's average of 31.61. TGT carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target's current financial-year sales and earnings per share implies a year-over-year decline of 1.8% and 14.8%, respectively.
Target currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT): Free Stock Analysis Report
Walmart Inc. (WMT): Free Stock Analysis Report
Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
40 minutes ago
- Globe and Mail
CARGO THERAPEUTICS INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of CARGO Therapeutics, Inc.
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ('KSF') are investigating the proposed sale of CARGO Therapeutics, Inc. (NasdaqGS: CRGX) to Concentra Biosciences, LLC. Under the terms of the proposed transaction, Concentra will acquire CARGO for $4.379 in cash per share, plus one non-transferable contingent value right, representing the right to receive: (i) 100% of the closing net cash of CARGO in excess of $217.5 million; and (ii) 80% of any net proceeds received within two years following closing from any disposition of certain of CARGO's product candidates that occurs within two years following closing. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company. If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ( toll free at any time at 855-768-1857, or visit to learn more. Please note that the transaction is structured as a tender offer, such that time may be of the essence. To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit
Globe and Mail
42 minutes ago
- Globe and Mail
TC BANCSHARES INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of TC Bancshares, Inc.
Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC ('KSF') are investigating the proposed sale of TC Bancshares, Inc. (OTC: TCBC) to Colony Bankcorp, Inc. (NYSE: CBAN). Under the terms of the proposed transaction, shareholders of TC will have the right to elect to receive either $21.25 in cash or 1.25 shares of Colony's common stock in exchange for each share of TC Bancshares common stock, subject to customary proration and allocation procedures such that approximately 20% of TC Bancshares common stock will be converted to cash consideration and the remaining 80% will be converted to Colony common stock. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company. If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ( toll free at any time at 855-768-1857, or visit to learn more. To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit
Globe and Mail
an hour ago
- Globe and Mail
Gencor Posts 6 Percent Q2 Revenue Drop
Key Points - GAAP revenue fell 6.1% in Q2 FY2025 from the prior-year period, and backlog dropped sharply by 44.8% year-over-year, from March 31, 2024, to March 31, 2025. - GAAP gross profit margin declined slightly in Q2 FY2025, while net income per share remained steady at $0.42 for the quarter ended March 31, 2025, compared to the same period in 2024. - Cash and marketable securities increased to $143.7 million as of Q2 FY2025, with no debt outstanding. These 10 stocks could mint the next wave of millionaires › Gencor Industries (NYSEMKT:GENC), a maker of equipment for the highway construction industry, reported its fiscal second quarter results on July 25, 2025. The most significant news was a 6.1% year-over-year decline in GAAP revenue, down to $38.2 million in Q2 FY2025, and a sharp drop in backlog to $27.8 million as of Q2 FY2025. Earnings per share (GAAP) held steady at $0.42 in Q2 FY2025. No analyst estimates were available for comparison. The quarter reflected stable underlying profitability and strong liquidity, but revealed cautionary signals, including declining sales, margin compression, and a materially lower backlog from a year ago, as reflected in GAAP results for Q2 FY2025. Business Overview and Success Factors Gencor Industries is a leading manufacturer of heavy machinery and systems used mainly in the production of asphalt and highway construction materials. Its main clients are highway construction firms that depend on federal and state infrastructure budgets to fund their purchases. The company's most critical success factors are the level of government infrastructure spending, its investment in technology-driven products, and its operational efficiency. Demand is closely tied to highway funding, which can cause order and revenue swings. Gencor emphasizes innovative, energy-efficient, and environmentally friendly equipment--often tailored to meet strict regulatory standards in roadbuilding and materials production. Quarter in Review: Revenue, Margin, and Backlog Trends During the quarter, GAAP revenue dropped 6.1% in Q2 FY2025. The revenue figure also reflected a decrease in contract equipment sales recognized at a point in time. Backlog, a leading indicator of future revenue, fell sharply to $27.8 million as of Q2 FY2025 from $50.4 million as of Q2 FY2024. Gross profit margin (GAAP) narrowed slightly to 29.7% from 30.3% in Q2 FY2025. Management attributed this dip to modestly higher material costs. Despite this, operating expenses declined as the company reduced product engineering and development costs to $681,000 for the quarter ended March 31, 2025, down from $893,000 a year earlier. This cut reflected a reduction in headcount. Selling, general, and administrative expenses also decreased. Net income for the quarter ended March 31, 2025, totaled $6.1 million, with EPS of $0.42 for the quarter ended March 31, 2025, unchanged from the same period in 2024. This steady performance was supported in part by higher net other income, which rose to $1.8 million from $1.0 million, thanks to gains on marketable securities in Q2 FY2025. Operating income was $6.5 million for the quarter ended March 31, 2025, down 8.4% from the same period in 2024. Increased other income helped offset this shortfall. The effective tax rate increased to 26.0% for the quarter ended March 31, 2025, up from 23.0% a year earlier. The company remains focused on disciplined cost control, with lower expenses across key categories. As of March 31, 2025, Gencor held $143.7 million in cash, cash equivalents, and marketable securities and reported zero debt. Gencor's main product families include portable and stationary asphalt plants, which are large-scale production facilities for making asphalt used in highway construction. The company is recognized for its counter flow drum mix technology, which improves efficiency and environmental performance. Recent innovation investment has been a business focus, but product engineering and development spending was reduced in Q2 FY2025. Management attributed this primarily to reduced headcount. Monitoring product development spending is important to assess the company's ongoing commitment to maintaining its technology leadership amid growing regulatory and customer demands for greener solutions. Looking Ahead: Guidance and Industry Dynamics In its commentary, it noted the return to a "more traditional market" for the rest of the year and repeated its focus on improving manufacturing efficiency and delivering high quality products and services. While legislative support for government infrastructure spending is expected to benefit the industry, the company highlighted risks related to timing of orders, competitive pressures, and higher input costs. With backlog sharply lower as of Q2 FY2025, investors may want to watch for signs of order growth and a rebound in sales metrics in coming quarters. In addition to order timing and seasonality, further reductions in product engineering investments or continued easing of margins could also impact results. GENC does not currently pay a dividend. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,040%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025
