Why Target Stock Jumped More Than 10% This Week
Week to date, shares of Target (NYSE: TGT) were trading up 12% as of 1:00 p.m. ET on Friday, according to data provided by S&P Global Market Intelligence. Earlier this week, Target delivered better-than-expected earnings and offered a positive outlook for the near term.
Investors had been concerned about supply chains and margins going into the quarter, but Target's strategy to open and upgrade stores continues to impress investors.
Target's string of successful quarters over the last few years has demonstrated that it's a well-run business that might deserve a higher valuation. It bucked the retail-industry trend by opening stores when everyone else was closing them going into the pandemic. Over the last five years, this strategy led to revenue increasing cumulatively by 50%, while earnings per share more than doubled.
Source Fool.com
