Why Target Stock Is Worth the Risk
The U.S. economy just recorded its second straight quarter of contraction. Whether it will officially be declared a recession doesn't really matter. Investors now have to make decisions in an ongoing economic downturn regardless of how it's defined.
Consumers are managing their money in an uncertain and inflationary environment. Some may wonder why investing in a retailer at this time would make any sense. But there are several good reasons why buying stock in a retail giant like Target (NYSE: TGT) right now is worth the risk.
Target shares plunged nearly 30% during the week in May when it shocked investors with its first-quarter earnings report. While it marked the company's 20th consecutive quarter with sales growth, management warned there are more troubling results ahead. Target miscalculated the changing consumer trends and was caught with too much inventory of the wrong products.
Source Fool.com
