Latest news with #TargetCorporation
Yahoo
5 days ago
- Business
- Yahoo
Target Corporation (TGT): A Bull Case Theory
We came across a bullish thesis on Target Corporation (TGT) on LongYield's Substack. In this article, we will summarize the bulls' thesis on TGT. Target Corporation (TGT)'s share was trading at $94.29 as of 23rd May. TGT's trailing and forward P/E were 10.36 and 11.96 respectively according to Yahoo Finance. Ken Wolter / Target Corporation (NYSE: TGT) reported first-quarter 2025 results that reflect a difficult retail environment marked by a 2.8% decline in net sales to $23.8 billion and a 3.8% drop in comparable sales, with store sales down 5.7% and traffic declining 2.4%. While digital sales grew 4.7%, and same-day services surged, these gains were not enough to offset macroeconomic headwinds like inflation, tariff pressures, and cautious consumer spending. Adjusted EPS fell to $1.30 from $2.03, missing expectations, while gross margins contracted due to markdowns and digital fulfillment costs. However, improved shrink helped offset some margin pressure. Despite near-term weakness, Target maintained strong capital deployment, repurchasing $251 million in shares and paying $510 million in dividends. The company lowered its full-year EPS guidance to $7.00–$9.00 and expects capital expenditure near the low end of $4–$5 billion. Target gained market share in 15 of 35 tracked categories, with strength in essentials, apparel, and seasonal goods, aided by standout campaigns like the Kate Spade collaboration. Its positioning on value and curated offerings kept it competitive with peers such as Walmart and Amazon. Geopolitical and tariff risks remain a concern, but Target is aggressively diversifying sourcing and holding prices steady. Omnichannel investments continue to pay off, with stores fulfilling 96% of sales and fulfillment speeds improving. Inventory was elevated but is expected to normalize by year-end. Though Q1 disappointed and guidance was cut, Target's digital momentum, cost control, and long-term strategy offer a foundation for recovery and long-term investor appeal. Previously, we have covered Target Corporation (TGT) in April 2025 wherein we summarized a bearish thesis by maparo on wallstreetbets subreddit page. The author highlighted that the company faced multiple challenges, including declining consumer spending, weakening foot traffic, and a stagnant financial outlook with slipping sales and earnings. Critics argued that Target's pricing and brand positioning had eroded, leaving it vulnerable to competition from Walmart, Amazon, and Costco, while looming tariff pressures threatened to further squeeze margins. Overall, the analysis warned of a structural decline and recommended bearish trades due to the risk of further stock price weakness. Since our last coverage, the stock is up 2.32%. Target Corporation (TGT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held TGT at the end of the first quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Target Corporation (TGT): 'They Have No Choice. They Have To Cut Price,' Believes Jim Cramer
We recently published a list of . In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against other stocks that Jim Cramer discusses. A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT) is another commonly discussed retail stock on Cramer's morning show. Throughout the course of this year, the CNBC TV host has maintained that Target Corporation (NYSE:TGT) will struggle to compete with retail giant Walmart on the cost front. He also believes that not only does the firm have a significant portion of its products come through imports but also that Target Corporation (NYSE:TGT) needs to lower prices to 2018 levels. Here are Cramer's latest thoughts about Target Corporation (NYSE:TGT) which followed the firm's latest earnings report: 'Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let's just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he's just insisting that it's not really, it's not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I'm gonna come back. . .is scale. Overall, TGT ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TGT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
28-05-2025
- Business
- Yahoo
Target Corporation (TGT): 'They Have No Choice. They Have To Cut Price,' Believes Jim Cramer
We recently published a list of . In this article, we are going to take a look at where Target Corporation (NYSE:TGT) stands against other stocks that Jim Cramer discusses. A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT) is another commonly discussed retail stock on Cramer's morning show. Throughout the course of this year, the CNBC TV host has maintained that Target Corporation (NYSE:TGT) will struggle to compete with retail giant Walmart on the cost front. He also believes that not only does the firm have a significant portion of its products come through imports but also that Target Corporation (NYSE:TGT) needs to lower prices to 2018 levels. Here are Cramer's latest thoughts about Target Corporation (NYSE:TGT) which followed the firm's latest earnings report: 'Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let's just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he's just insisting that it's not really, it's not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I'm gonna come back. . .is scale. Overall, TGT ranks 9th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of TGT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TGT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Does Target Corporation (TGT) Stock Offer Strong Upside from the Current Price?
Matrix Asset Advisors, an asset management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. After two years of gains exceeding 20%, the stock market rally ended in February when the president intensified his tariff threats. Technology and Growth stocks drove the stock market's first-quarter decline. Matrix's portfolios performed well during a challenging quarter. The Matrix Dividend Income portfolio recorded a slight positive return, while the LCV portfolio, which is more exposed to Technology, experienced a modest decline. Matrix's Large Cap Value Portfolio (LCV) was down low single digits in Q1, surpassing the S&P 500® Index's loss but behind the Russell 1000 Value's 2.14% gain. Matrix Dividend Income (MDI) started the year positively, growing low single digits in Q1, ahead of both the S&P 500®'s loss and the Russell 1000® Value Index. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Matrix Asset Advisors highlighted stocks such as Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was 0.30%, and its shares lost 34.35% of their value over the last 52 weeks. On May 27, 2025, Target Corporation (NYSE:TGT) stock closed at $96.99 per share with a market capitalization of $44.069 billion. Matrix Asset Advisors stated the following regarding Target Corporation (NYSE:TGT) in its Q1 2025 investor letter: "The market's Q1 volatility provided opportunities to take profits on strength while very slowly redeploying the proceeds. With our larger-than-usual sales and scale-backs, we entered the current quarter with a higher-than usual cash balance, allowing us to add to some laggards and start a new position in Target Corporation (NYSE:TGT), a name we have held before in the portfolio. As we write this commentary, more stocks are nearing compelling levels, and we expect to accelerate our buying. A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the first quarter, which was 56 in the previous quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Target Corporation (NYSE:TGT) and shared the list of stocks on Jim Cramer's radar. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
26-05-2025
- Business
- Globe and Mail
Walmart vs. Target: Which Retail Giant is Poised to Outperform?
Walmart Inc. WMT and Target Corporation TGT both dominate the retail landscape, offering everything from groceries and electronics to fashion and household essentials. Walmart, the world's largest retailer, is known for its unmatched scale, competitive pricing and growing digital presence. Target has carved out a loyal customer base, refocusing on its core strengths — affordable style, curated merchandising and strong store-brand appeal. As we move through 2025, both WMT and TGT are navigating a retail environment shaped by cautious consumer spending and rising pressure from e-commerce competitors. Walmart is doubling down on its strengths in grocery, logistics, and tech-enabled efficiency, while Target is focused on recovering from past margin pressure through tighter inventory management and improved merchandising. For investors comparing WMT vs. TGT stock today, the decision comes down to which company offers the better mix of stability, growth potential, and value in a rapidly evolving retail landscape. One-Year Performance The Case for Walmart Walmart continues to thrive, fueled by the strength of its highly diversified business model and consistent contributions across segments, markets, and sales channels. The company is effectively capturing increased traffic both in-store and online, underscoring its ability to adapt to a rapidly evolving retail landscape. Its multi-channel revenue approach — spanning physical stores, e-commerce, advertising and memberships — provides a strong, resilient foundation for long-term growth. High-margin initiatives like Walmart Connect, the company's advertising platform, and Walmart+, its subscription-based membership program, are becoming key profit engines. In the first quarter of fiscal 2026, advertising revenues soared 50%, while membership income grew by 14.8%, showcasing Walmart's successful pivot toward tech-enabled, higher-margin services that enhance both profitability and customer loyalty. A cornerstone of Walmart's success lies in its robust omnichannel strategy. The company has made significant investments in data analytics, store operations, and digital expansion to deliver a seamless shopping experience across platforms. In the first quarter of fiscal 2026, Walmart's global e-commerce sales climbed 22%, fueled by store-fulfilled pickup and delivery services. Supporting this momentum is its optimized last-mile delivery infrastructure, which is on track to provide same-day delivery to 95% of U.S. households, further strengthening its competitive edge in the fast-paced retail environment. While Walmart is off to a strong start in 2025, the company has flagged potential headwinds in the coming quarters — most notably from tariffs and broader economic uncertainty. Even at reduced levels, tariff-related costs could lead to modest price increases in the near term. Additionally, currency fluctuations may pose challenges to international operations. However, Walmart's expanding e-commerce footprint, strong everyday value proposition and continued growth in high-margin segments like advertising and memberships provide a solid cushion against near-term volatility. The Case for Target Target entered 2025 with a renewed focus on operational discipline and delivering greater customer value, showing early signs of stabilization after a challenging few years. The company has made progress in improving inventory reliability, enhancing fulfillment speeds and investing in store remodels and digital capabilities. In the first quarter of fiscal 2025, delivery speeds improved by 20%, while same-day services — particularly through Target Circle 360 — rose over 35%, meeting rising demand for convenience. Store remodels are delivering results, generating a 2% to 4% lift in comparable sales at updated locations. The company is expanding its third-party marketplace, Target Plus, which posted double-digit growth, while reinforcing its brand appeal through successful collaborations like the Kate Spade collection. These strategic investments in technology, fulfillment, and store expansion reflect Target's long-term vision to strengthen its competitive position in retail. However, the path to recovery has proven slower and is more uncertain than anticipated. In the fiscal first quarter, total sales declined 2.8% due to a 3.8% drop in comparable sales and a 2.4% decrease in traffic. Discretionary categories such as apparel and home — long-time strengths for Target — remain under pressure as inflation and economic concerns push consumers toward essential spending. Despite promotional campaigns like Target Circle Week, elevated markdowns and higher fulfillment costs led to a 60-basis-point contraction in gross margin. Meanwhile, inventory levels rose 11% year over year, indicating further margin risks in the near term due to additional markdowns. Profitability also remains under pressure. Adjusted earnings per share (EPS) dropped to $1.30 in the fiscal first quarter, down from $2.03 in the prior-year period, as weaker sales and cost inflation weighed on results. Rising SG&A expenses — including higher labor, healthcare, and capital investments — are proving difficult to absorb in a slower-growth environment. Tariff-related uncertainty and cautious consumer sentiment continue to complicate matters. On its most recent earnings call, management projected a low single-digit decline in full-year sales and revised its adjusted EPS guidance to a range of $7 to $9, citing macroeconomic headwinds and ongoing weakness in discretionary categories. While Target still benefits from strong brand equity, loyal customers, and a nationwide footprint, the company faces multiple near-term challenges. Persistent cost pressure, declining traffic and softness in higher-margin categories are likely to weigh on its performance through the rest of 2025. Until economic conditions improve and discretionary demand rebounds, Target's recovery may remain gradual and uneven. How Does the Zacks Consensus Estimate Compare for WMT & TGT? The Zacks Consensus Estimate for Walmart's fiscal 2026 EPS remains steady at $2.59 over the past seven days, reflecting a projected year-over-year growth of 3.2%. WMT's Estimate Revision Trend Image Source: Zacks Investment Research In contrast, the EPS estimate for Target for fiscal 2025 has moved down 9.6% to $7.72 in the past seven days, indicating a year-over-year decline of 12.9%. This divergence underscores a more favorable earnings outlook for Walmart compared to Target. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) TGT's Estimate Revision Trend Image Source: Zacks Investment Research Price Performance & Valuation of WMT & TGT Over the past 12 months, Walmart stock has delivered an impressive 47.3% return, significantly outpacing the broader S&P 500 Index, which rose 9.3% during the same period. In sharp contrast, Target has experienced a 35.1% decline in its stock price, reflecting investor concerns over earnings and operational headwinds. From a valuation standpoint, Walmart currently trades at a forward price-to-earnings (P/E) ratio of 35.82x. Meanwhile, Target trades at a more modest forward P/E of 12x amid operational challenges and weaker earnings visibility. The combination of strong price momentum and a premium valuation for Walmart signals a bullish market outlook, backed by consistent earnings performance and defensive sector positioning. Conclusion While Target has made progress through strategic investments in digital capabilities and store enhancements, its near-term outlook remains clouded by ongoing margin pressures, weak discretionary demand, and cautious consumer spending. In contrast, Walmart continues to position itself as a more stable retail investment in 2025, driven by consistent earnings growth, strong omnichannel execution, and rising contributions from high-margin segments like advertising and memberships, reinforcing investor confidence in its ability to navigate a challenging economic environment. WMT currently carries a Zacks Rank #3 (Hold), while TGT carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> 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
