Target Stock Looks Cheap but It May Be a Bargain Today for a Much Better Reason
The words "cheap" and "bargain" might look like synonyms. But as I'm using them, the difference has everything to do with the future. Well-know retailer (NYSE: TGT) trades at just 11 times its earnings, which is about 60% cheaper than the S 500, which trades at about 28 times earnings, according to YCharts. But it's not a good idea to invest in a stock simply because it looks cheap. If Target's profits drop further, this cheap stock likely isn't a bargain.
In other words, Target stock is "cheap" when compared to the valuation of the S 500, meaning it's merely less expensive right now. By contrast, the term "bargain" causes me to consider the quality of the business, not just the price. But it's precisely the quality of Target's business that's in question right now.
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Source Fool.com
Target Corp. Aktie
Die Target Corp. Aktie ist im Trend: Deutlich mehr Buy- als Sell-Einschätzungen.
Eine deutliche Steigerung um mehr als 50% ist für Target Corp. mit einem Kursziel von 149 € gegenüber 82.92 € zu erwarten.
