Underestimated Target for Bad Times. Target Stock Forecast

<p>A
potentially looming crisis in the US presents an opportunity to find stocks
that can defy prevailing trends in tough times and might be underestimated
right now. Target Corporation appears to possess both of these characteristics.
Let’s try to investigate if it’s true and whether investing in Target is a
prudent idea.</p><p>Target
ranks among the top 10 of the biggest retailers in the US, with nearly two
thousand stores and diverse avenues for online orders. The latter aspect
positioned Target favorably during the pandemic. A noticeable gap between
Target stock and the S&amp;P 500 index can be observed in 2021.</p><p>With the
end of the Covid pandemic, financials deteriorated after a temporary surge. Add
here an image scandal – and you get a large business on its lows. The chart
showcasing this year's movements helps to see the last months in detail.
Additionally, if you seek other undervalued stocks, you can use <a href="https://www.tradingview.com/screener/" target="_blank" rel="follow">stock
screener</a>, a tool that generates lists of stocks based on your
filters. </p><p>Stocks
from the consumer goods segment are traditionally deemed a good choice in
crises. When people have less free money, they don’t cease going to
supermarkets or making online orders. Instead, they seek discounts and special
offers, and Target emerges as a valuable ally in such circumstances. A scaled
chain of stores enables the company to seamlessly integrate its online and
offline capabilities, facilitating a more efficient working process.</p><p>The
other fact you need to know is that Target has been paying dividends for 50
more years, presently yielding 3.32%.</p><p>Nevertheless,
Target's recent financial reports failed to impress market participants. In
2022 the company’s revenue increased only by 2.9% compared to 2021, while net
income experienced a 60% decline during the same period.</p><p>Another
unfavorable factor is a dependence on discretionary product sales. Although
selling a multitude of goods within a specific category is advantageous, crises
prioritize essential items.</p><p>Analysts
consider that Target stock holds promise as an investment option. The consensus
forecast suggests a 31% increase in the next 12 months with a rating “Buy”.
This is a remarkable target given the <a href="https://uk.advfn.com/newspaper/igorkuchma/69978/us-economy-growing-but-debt-inflation-up" target="_blank" rel="follow">current state of the US economy</a>.</p><p>However,
it is crucial to remember that trade decisions should be made following
meticulous personal analysis. If Target or any other stocks appear to have more
negative aspects than positive ones in your eyes, it’s best to abstain from
including them in your portfolio.</p>

This article was written by FL Contributors at www.forexlive.com.