Target Wins Big Again on E-Commerce, but Its Success Is More Nuanced Than That

Target (NYSE: TGT) is growing at its fastest pace in decades. Third-quarter sales were up 21% year over year to $22.6 billion, and operating income jumped by 93% to $1.9 billion. Among the value stocks in my portfolio, Target is outperforming the pack by a wide margin with a 34% share price gain year to date -- and it's up by more than 70% from where I purchased it (again) during the early, intense phase of this spring's economic lockdown.

Thanks to its e-commerce strategy, I think this big-box store stock has a lot more room to rise.

Target said that its online retail segment remained in triple-digit percentage growth mode during the summer and early autumn months, with sales increasing by 155% compared to a year ago. But not all of its recent success can be attributed to digital sales. Only 10.9% of the 20.7% comparable-store sales expansion (or comps, an average of traffic and average ticket size) was attributed to e-commerce. The balance came from Target's physical stores. In a socially distanced and remote world, what drove that surge in traditional retail spending?

Source Fool.com