Valued at a market cap of around $53.4 billion, Target Corporation (TGT) is a leading U.S. retailer known for its affordable yet stylish product offerings across diverse categories, from groceries to home goods and apparel. Founded in 1902 and headquartered in Minneapolis, the company operates a mix of standard Target stores, SuperTarget locations, and smaller urban formats.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Target fits this criterion perfectly. Target has built a strong brand through exclusive private labels like Good & Gather and Cat & Jack, alongside a seamless omnichannel strategy with same-day delivery and curbside pickup.
However, despite its strong market position, the retailer is down 37.3% from its 52-week high of $181.86. Over the past three months, the stock has declined 13.9%, underperforming the broader Dow Jones Industrial Average’s ($DOWI) 4.6% fall during the same time frame.
TGT has dipped 24.6% over the past six months, lagging behind DOWI's 5.5% gain. Moreover, TGT’s shares have plunged 34.3% over the past 52 weeks, compared to DOWI's marginal return over the same time frame.
Target has been trading below its 50-day moving average since mid-November and under its 200-day moving average since early February.
On Mar. 4, Target reported strong Q4 earnings, beating analyst expectations with EPS of $2.41 and revenue of $30.9 billion. However, despite same-store sales rising 1.5%, total sales and net profit declined 3% and 19% year over year due to an additional week in Q4 2023. However, the stock dropped 5.2% as investors reacted to the overall sales decline despite the earnings beat.
Additionally, rival Dollar General Corporation (DG) has significantly underperformed TGT, declining 51.1% over the past 52 weeks and 7.7% over the past six months.
Despite TGT’s weak price action over the past year, analysts are moderately optimistic, with a consensus rating of "Moderate Buy" from 32 analysts. The mean price target of $145.88 suggests a 27.9% upside potential from current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
