Straggling Target needs to make a bold move behind Wal-Mart and Amazon CNBC - 3 hours ago Target has made little apparent advancements in the grocery aisles and in beefing up its digital operations of late. Instead of acquiring smaller players, as Wal-Mart is doing, Target is investing around $7 billion back into its own busines
Dividend is near 5%, with solid earnings. This is a steal. With today's announcement, look forward, not backward. The bottom is here. If they really beat, with + guidance look for this near 70.
TGT has bounced off a double bottom recently, and now formed a higher low... TREND IS UP... and TREND IS YOUR FRIEND
Bricks and mortar shops are dying slow. Amazon and Automation are the future. Others can try and catch up. But the ship has sailed.
Another underappreciated company that should be worth more than what it is valued at today. The growth initiatives set forth should materialize into better comps and in-store foot traffic, but perhaps more importantly, into an improved customer experience (the it factor that defines the growth curve of any company for the foreseeable future) by introducing new brands. The digitization of the business is key. At the end of 2017 it only accounted for roughly 5% of total sales. As this becomes a bigger part of its sales and operating expenses remain well managed, margins should trend higher into the next few years which should yield a higher multiple. I remember back when I lived in the states the default option was always Target or Amazon. To this day, from what I've heard, it remains the case. Competition in the space is high , but that has been a known fact for some time. I don't associate, in every single case, competition as a deterrent to growth. Yes, Target, Wal-Mart and Costco will battle in price and volume which will impact margins, but the strategy Target adopted in scaling its delivering service is key to offset compression seen in price will help raise its top and bottom line numbers. I am not picking favorites. The setting is such that TGT, WMT, COST, AMZN and other smaller distributors can co-exist. TGT has the better ROI, right now. $74.47 needs to hold short, mid and long term. This is the inflection point that defines the current move off the lows. This is breaking out in slow fashion just like NKE where the process, not event, determines the nature of the breakout. A break above $81.06 confirms a new multi-year uptrend but it will require a break above the multi-year high of $85 to see this pushed higher. There is one of two choices. You buy near these levels believing the initiatives will pay off and use $74.47 as the bogey to measure risk, ir wait until $81.06 is cleared followed by a break of $85.
Waiting patiently for this to break trend and enter a new cycle. It will most likely be a 2019 to 2020 story but I am getting my queue from price if in case the street decides to bid this early.
$74.47 was tested yesterday, again, to then produce the bounce. But again, it requires a trade above $81.06 to confirm a new uptrend.
The signature categories represent one-third of total revenue, but the company is coming under pressure as consumers shift more to digital retails. When it comes to e-commerce, Target pales in comparison to both Walmart and Amazon: it generates $4 billion of sales annually through digital versus $23+ billion for Walmart and $60+ billion for Amazon. Hence, investors are watching out for the company's progress on the e-commerce front.
Target (NYSE: TGT) proved up to the challenge Wednesday morning. The retailer put up spectacular second-quarter numbers, with both its stores and its online business booming. A combination of strong consumer spending, a flurry of new exclusive brands, and major e-commerce initiatives led to the best quarter for Target in more than a decade.
Target reports holiday same-store sales growth of 5.7%, maintains 2018 outlook Target says its 2018 holiday same-store sales rose 5.7 percent. That's compared with growth of 3.4 percent in 2017. The retailer is maintaining its same-store sales forecast for the fourth quarter and profit outlook for fiscal 2018. Target saw a surge of shoppers head to its stores and website this past holiday season, a sign that its investments in store remodels and delivery services are paying off, and an early sign that consumers across the U.S. spent more on gifts this year. The retailer said in a Thursday press release that sales at its stores and website operating for at least 12 months climbed 5.7 percent this past holiday season. That's compared with growth of 3.4 percent a year ago and surpassing some analysts' expectations. Target shares were last falling more than 2 percent after climbing over 1 percent in pre-market trading. Based on Thursday's results, Target said it's maintaining its profit outlook for the fourth quarter and fiscal 2018. It also announced the retirement of CFO Cathy Smith, in addition to a handful of other management changes. Overall, CEO Brian Cornell said he's "very pleased" with Target's performance during this past November and December, both in stores and online. The company said it managed to attract more shoppers who also spent slightly more per visit. Some of its strongest sales were in the baby and toy categories. "In 2019, we expect to build on this momentum … and deliver profitable growth throughout the year," Cornell said in a statement. Target said digital sales were up 29 percent during the holidays, thanks to the retailer offering more delivery options like buy online pick up in store. It said the amount of online orders fulfilled through either in-store pick up or a curbside pick up services was up 60 percent from a year ago and accounted for roughly 25 percent of online sales during this past November and December. Target added it remains on track to report digital sales growth of more than 25 percent in 2018, which would make it the fifth consecutive year it's been able to do so.
Dividend Stock Spotlight: Target (TGT) Thu, Sep 19, 2019 Earlier today, Target (TGT) announced that its board approved a new $5 billion buyback program which is expected to begin in 2020. In addition to the buybacks, which are equivalent to over 9% of the company's market cap, TGT also declared its quarterly dividend of $0.66 per share. While the stock is down today, after a big beat in its last earnings report in August, TGT skyrocketed over 20% with further gains in the following days. Although it has pulled back a bit recently, the stock remains elevated, but also still yields 2.47%. That yield is larger than the 2.07% average for other S&P 500 retailers and the broader S&P 500 which yields only 1 bp less than retail. TGT has also consistently raised its dividend each year going all the way back to 1980. In the past five years alone, the dividend has grown over 7%. While that is a somewhat slower pace than the average for S&P 500 retailers in that time (11.27%), Target's dividend payout ratio is also low meaning that the company has room to not only keep paying out this dividend but also to raise it further. Taking into account the buyback program and recent strong quarter only adds to the case the company has the ability to increase the dividend in the future. Additionally, looking at the company's valuation, it also has a lower price-to-earnings, price-to-book, and EV/EBITDA than comparable companies in its group. Again, that is even though price has seen a massive run higher in the past month.
Target Nearly a Double With a Below Market Multiple Wed, Nov 20, 2019 Even before today, 2019 had been a great year for Target (TGT). While many retailers have succumbed to the forces of gravity, TGT was up over 65% YTD through yesterday's close. After this morning's earnings report, though, TGT is up another 14%, taking its total YTD gain to over 95%, or nearly a double! Looking at the chart below, there have been a number of gaps higher in the stock this year, and that's because much of the stock's gains have come in reaction to earnings. For example, of the 60 points that the stock has added to its share price this year, 42 of those points have come on the four days that the stock reported earnings! While TGT has been one of the top-performing stocks in the S&P 500 this year, you may be surprised to learn that it actually still has a slightly below-market multiple. That's right, while the S&P 500 currently trades at about 20.6 times trailing earnings, TGT's P/E ratio is slightly less at 20.13. While it may come as a surprise to hear that TGT still trades at a below-average multiple, there are actually three other stocks in the S&P 500 that are up by more on a YTD basis and also have lower P/E ratios than the S&P 500. The table below lists the 23 stocks in the S&P 500 that are up by more than 50% YTD and still have below market multiples. Topping the list are two semiconductor stocks - Lam Research (LRCX) and KLA Corp (KLAC). Given their cyclicality, semiconductors often trade at below-market multiples, so the fact that they are trading at near-market multiples suggest that they aren't cheap right now. Bulls would counter that the sector has become less cyclical as evidenced by the relatively shallow down cycle the sector saw last year. Right above TGT, another notable name is Xerox (XRX). Even after the stock has essentially doubled this year following a takeover offer from HP, it still trades at less than 10 times earnings. Granted, it's Xerox, but still, it's not common to see a stock double and still trade at less than 10 times earnings. Looking through the rest of the list, there are a number of other semiconductor-related stocks (AMAT, STX, and QCOM), but another group that stands out is the homebuilders as DR Horton (DHI), PulteGroup (PHM), and Lennar (LEN) have all rallied more than 50% but still trade cheaper than the S&P 500.
I dont know if it will hold true but I actually think Target will do okay. I think Walmart and Amazon are losing customers because they sell crappy products and even in a tough economic time people are shifting towards using their money as a voting mechanism. As companies stick their noses into politics, I see them losing customers. I wont purchase anything from Amazon unless I really cant find it anywhere else. Kohl's is another retailer that has taken a beaten but that I actually like. They need to change their business model for sure and definitely do something to combat their hire retail theft numbers but I do like them as a company and what they offer to the consumer in affordable, relevant clothing and household goods.
