Target (NYSE: TGT), the eighth-largest retailer in the U.S. by sales, performed well in 2020, in part thanks to consumers stocking up on household items during the first half of 2020 at the start of the COVID-19 pandemic. Full-year fiscal 2020 revenue increased 19.8% with a 19.3% increase in comparable-store sales.
While the consumer-discretionary company did not give guidance for fiscal 2021, citing "continued uncertainty" (including the impact of COVID-19), its stores will likely see a boost as many states in the U.S. lift capacity restrictions and people do more in-person shopping. But that uncertainty is underlined by consensus analyst estimates, which call for revenue and earnings to decrease 2.8% and 7.7%, respectively, in the current year. However, analysts are also projecting a return to growth in 2022.
Here are three reasons the stock is likely to outperform in the long term.
Source Fool.com