Is Target Stock Too Cheap to Ignore?

The discount being offered for (NYSE: TGT) shares in 2023 might be getting out of hand. The retailer's stock is down 25% so far this year compared to a 14% increase for the S 500. That slump comes even as retailing peers like Walmart (NYSE: WMT) and Costco Wholesale (NASDAQ: COST) have stocks currently beating the wider market in 2023.

There are some good reasons for investors to be disappointed about Target's short-term outlook relative to its rivals. But a lot of that pessimism was already reflected in its lower valuation. Let's look at whether the stock's drop this year now makes it a good value -- or a value trap -- going forward.

The biggest knock against Target as a company right now is the fact that sales trends look weak compared to peers and have softened in recent quarters. Customer traffic was down 4% in fiscal Q2 (ended July 29), while Walmart and Costco each managed modest gains during their comparable quarters.

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Source Fool.com