Is Target Stock Too Cheap to Ignore?
The discount being offered for (NYSE: TGT) shares in 2023 might be getting out of hand. The retailer's stock is down 25% so far this year compared to a 14% increase for the S 500. That slump comes even as retailing peers like Walmart (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) have stocks currently beating the wider market in 2023.
There are some good reasons for investors to be disappointed about Target's short-term outlook relative to its rivals. But a lot of that pessimism was already reflected in its lower valuation. Let's look at whether the stock's drop this year now makes it a good value -- or a value trap -- going forward.
The biggest knock against Target as a company right now is the fact that sales trends look weak compared to peers and have softened in recent quarters. Customer traffic was down 4% in fiscal Q2 (ended July 29), while Walmart and Costco each managed modest gains during their comparable quarters.
Source Fool.com
Target Corp. Stock
Our community is currently high on Target Corp. with 33 Buy predictions and 12 Sell predictions.
However, we have a potential of -5.1% for Target Corp. as the target price of 119 € is below the current price of 125.4 €.
