Why Retail Stocks Could Still Struggle in 2024
It has been a tough couple of years for retail stocks. Last year, the SPDR S Retail ETF fell by 33% as rising interest rates weighed on the markets. And this year hasn't shown any improvement, with the index's value being relatively unchanged from where it started 2023. It may be tempting to think that retail stocks may be bottoming out and that the new year could be better for them. But that could be a mistake. Here's why they're likely to struggle in 2024 as well.
According to data from online review website Trustpilot, consumers are planning to scale back their spending this year when compared to 2022. Data from a recent survey found that, on average, 39% of Americans who spent money last holiday season are going to spend less money this year. Rising costs are a big part of the reason, as inflation is putting pressure on consumers.
To make matters worse, student loan repayments resume this month, which can put added pressure on consumers, forcing them to stretch their budgets even more. Although some spending, such as groceries, is essential, companies that rely on discretionary spending, including (NYSE: TGT) and Home Depot, could feel the worst of these effects.
Source Fool.com
Target Corp. Stock
With 62 Buy predictions and 1 Sell predictions Target Corp. is one of the favorites of our community.
With a target price of 160 € there is a slightly positive potential of 14.17% for Target Corp. compared to the current price of 140.14 €.
