4-Star Stocks Poised to Pop: Target
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail giant Target (NYS: TGT) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Target's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Minneapolis (1902)|
|Market Cap||$32 billion|
|Industry||General merchandise stores|
|Trailing-12-Month Revenue||$67.7 billion|
|Management||Chairman/CEO Gregg Steinhafel|
CFO Douglas Scovanner
|Return on Equity (Average, Past 3 Years)||17.3%|
|Cash / Debt||$1.45 billion / $15.78 billion|
|Competitors||Amazon.com (NAS: AMZN) |
Costco (NAS: COST)
Wal-Mart (NYS: WMT)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91% of the 2,518 members who have rated Target believe the stock will outperform the S&P 500 going forward. These bulls include cdoooc and All-Star JPresbrown, who is ranked in the top 10% of our community.
Late last month, cdoooc tapped Target at a solid income opportunity:
Financials rival WMT with an increasing dividend. Stores are more customer friendly / cleaner than WMT. Generics business will drive their pharmacy revenues. A no brainer.
Currently, Target even trades at a cheapish price-to-cash flow of 6.5. That represents a discount to rivals Amazon (27.9), Costco (10.9), and Wal-Mart (7.2).
CAPS All-Star JPresbrown elaborates on the Target bull case:
This is an excellent long-term performer with a multi-decade record of dividend increases selling at the bottom of its 52-week range, for just 12x earnings and a PEG (PE to growth) ratio of just 1.0. This stock has been underperforming the market badly recently but once this year's economic growth scare fades away and we start to build toward the seasonally strong fourth quarter you'll be glad you tucked this ... stock away in your portfolio.
What do you think about Target, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to track Target?Add it to your watchlist.
At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Costco, Amazon, and Wal-Mart, as well as creating a diagonal call position in Wal-Mart. The Fool owns shares of Costco and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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