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Learn more about whether Target Corp is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (TGT) grades on certain investment factors and determine whether it meets your investment needs.
Latest Target Corp Stock News
As of March 26, 2024, Target Corp had a $79.7 billion market capitalization, putting it in the 98th percentile of companies in the Retailers - Discount Stores industry.
Currently, Target Corp’s price-earnings ratio is 19.3. Target Corp’s trailing 12-month revenue is $107.4 billion with a 3.9% profit margin. Year-over-year quarterly sales growth most recently was 1.7%. Analysts expect adjusted earnings to reach $9.400 per share for the current fiscal year. Target Corp currently has a 2.5% dividend yield.
The outlook for the discount store industry is negative. This view reflects a belief that the extremely robust same store sales growth rates of 2020 are likely to slow to low-single digit levels in 2021, while margins are likely to be squeezed by cost pressures from greater e-commerce mix, rising wages and warehousing/transportation costs, commodity cost inflation, more promotional activity, greater shrink, and lingering Covid-19 related expenses. In our view, the Covid-19 pandemic created a “perfect storm” of factors which drove growth in 2020: pantry stockpiling, the closure of restaurants, small businesses and mall-based retailers, larger ticket sizes, and extremely strong e-commerce growth driven by supply chain investments that were made years earlier. We think comps will become more difficult in 2021 and same store growth will moderate meaningfully, although a “second wave” could skew growth rates higher and additional consumer stimulus would be a positive. According to the U.S. Census Bureau, warehouse clubs and superstores sales totaled $529.0 billion in 2020 (latest available data), a 6.6% increase compared with the previous year. Warehouse clubs and super centers currently hold a market share of approximately 23% of the U.S. grocery market. Although profit margins on grocery items are not high, super centers generate heavy store traffic by virtue of their size, resulting in greater sales of general merchandise, which have higher margins.
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Grading Target Corp Stock
Before you choose to buy, sell or hold Target Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (TGT) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Target Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!
Latest Target Corp Stock News
As of March 26, 2024, Target Corp had a $79.7 billion market capitalization, putting it in the 98th percentile of companies in the Retailers - Discount Stores industry.
Currently, Target Corp’s price-earnings ratio is 19.3. Target Corp’s trailing 12-month revenue is $107.4 billion with a 3.9% profit margin. Year-over-year quarterly sales growth most recently was 1.7%. Analysts expect adjusted earnings to reach $9.400 per share for the current fiscal year. Target Corp currently has a 2.5% dividend yield.
The outlook for the discount store industry is negative. This view reflects a belief that the extremely robust same store sales growth rates of 2020 are likely to slow to low-single digit levels in 2021, while margins are likely to be squeezed by cost pressures from greater e-commerce mix, rising wages and warehousing/transportation costs, commodity cost inflation, more promotional activity, greater shrink, and lingering Covid-19 related expenses. In our view, the Covid-19 pandemic created a “perfect storm” of factors which drove growth in 2020: pantry stockpiling, the closure of restaurants, small businesses and mall-based retailers, larger ticket sizes, and extremely strong e-commerce growth driven by supply chain investments that were made years earlier. We think comps will become more difficult in 2021 and same store growth will moderate meaningfully, although a “second wave” could skew growth rates higher and additional consumer stimulus would be a positive. According to the U.S. Census Bureau, warehouse clubs and superstores sales totaled $529.0 billion in 2020 (latest available data), a 6.6% increase compared with the previous year. Warehouse clubs and super centers currently hold a market share of approximately 23% of the U.S. grocery market. Although profit margins on grocery items are not high, super centers generate heavy store traffic by virtue of their size, resulting in greater sales of general merchandise, which have higher margins.
Sign Up to Receive a Free Special Report That Shows How A+ Investor Grades Can Help You Make Investment Decisions
Grading Target Corp Stock
Before you choose to buy, sell or hold Target Corp stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (TGT) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Target Corp’s stock grades for value, growth and quality. Learn more about A+ Investor here!
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Target Corp Stock Quality Grade
Quality Grade:
| Metric | Score | TGT | Sector Median |
| Return on Assets (ROA) | 85 | 7.6% | 1.4% |
| Return on Invested Capital (ROIC) | 39 | 13.2% | 16.5% |
| Gross Income to Assets | 87 | 53.6% | 30.1% |
| Buyback Yield | 55 | (0.3%) | (0.2%) |
| Change in Total Liabilities to Assets | 58 | (0.3%) | (0.4%) |
| Accruals to Assets | 62 | (8.1%) | (6.6%) |
| Z Double Prime Bankruptcy Risk (Z) Score | 53 | 4.43 | 4.81 |
| F-Score | 70 | 6 | 5 |
Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Grade is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.
The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.
The Quality Score is used to assess the underlying “quality� of a particular stock. A higher quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.
Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.
Target Corp has a Quality Score of 84, which is Very Strong.
Target Corp Stock Momentum Grade
Momentum Grade:
| Metric | Score | TGT | Sector Median |
| Relative Price Strength (Q1) | 85 | 12.2% | (10.7%) |
| Relative Price Strength (Q2) | 81 | 15.3% | (3.7%) |
| Relative Price Strength (Q3) | 33 | (15.3%) | (7.9%) |
| Relative Price Strength (Q4) | 22 | (24.5%) | (7.2%) |
| Relative Price Strength (weighted 4 qtr) | 71 | -0.0% | (6.4%) |
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Target Corp has a Momentum Score of 71, which is Strong.
Target Corp Stock Earnings Estimate Revisions Grade
Estimate Revisions Grade:
| Metric | Score | TGT | Sector Median |
| Quarterly Surprise SUE Latest Qtr | 82 | 5.8 | 2.0 |
| Quarterly Surprise SUE Prior Qtr | 87 | 7.6 | 1.9 |
| EPS Est Current Year % Rev Last Month | 82 | 2.9% | 0.0% |
| EPS Est Current Year % Rev 3 Mos | 40 | (0.1%) | 0.0% |
The Earnings Estimate Revisions Score considers the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).
Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. The Earnings Estimate Revisions Score is based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.
Target Corp has an Earnings Estimate Revisions Score of 73, which is Positive.
Other Target Corp Stock Grades
In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.
Invest with Confidence with A+ Investor
AAII’s expansive and robust screening tools like A+ Investor help investors make confident decisions.
Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower—growth companies. AAII measures several dimensions of growth in its Growth Grade, including year—over—year increases in sales and earnings, long(er)—term historical sales and earnings growth rates and analyst‐forecasted long—term earnings growth.
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Target Corp’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.
Should I Buy Target Corp Stock?
Overall, Target Corp stock has a Quality Grade of A, Momentum Grade of B Earnings Estimate Revisions Grade of B.
Whether or not you should buy Target Corp stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.
Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Target Corp stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.
Target Corp (TGT) Competitors
Companies similar to Target Corp in the Retailers - Discount Stores industry.
| Company name | Ticker | Market Cap |
| Dollar Tree Inc | DLTR | $28.46Bil |
| Dollar General Corp | DG | $33.38Bil |
| Wal Mart de Mexico SAB de CV (ADR) | WMMVY | $71.70Bil |
| TJX Companies Inc | TJX | $114.98Bil |
| Costco Wholesale Corporation | COST | $323.47Bil |
Target Corp Stock: Bottom Line
You can use the information about how Target Corp is graded to determine if you should invest in this stock. However, you should decide whether Target Corp’s stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.
Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets—without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.
So, if you’re still on the fence about whether Target Corp is a buy, sell or hold, you can utilize AAII’s expansive and robust screening tools like A+ Investor to help with your decision.
A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
