Target Stock Actually Gained 6% in the Second Half of 2022. Is the Worst Over?
Target (NYSE: TGT) stock ended a bad year on a good note. Shares gained 6% in the final six months of the year, besting the 1.4% increase in the S&P 500 during that time. That boost didn't change the fact that Target trailed the market for the full 2022 period, shedding 36% of its value.
The modest rebound in late 2022 came as investors grew slightly less fearful about a difficult recession on the way. But Target still faces some big challenges ahead as it works to push profitability back up toward the high single digits.
The key factor supporting the stock in recent months has been signs of stabilization in Target's business. Sure, operating profit margin fell hard in the Q3 period that ended in late October. But the chain's price cuts appear to be doing their job in clearing out inventory and supporting demand trends.
Source Fool.com
