Why Target Is Poised to Keep Climbing

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail giant has earned a respected four-star ranking.

With that in mind, let's take a closer look at Target, and see what CAPS investors are saying about the stock right now.

Target facts

Headquarters (founded)

Minneapolis, Minn. (1902)

Market Cap

$44.2 billion

Industry

General merchandise stores

Trailing-12-Month Revenue

$73.1 billion

Management

Chairman/CEO Gregg Steinhafel

CFO John Mulligan

Return on Equity (average, past 3 years)

18.4%

Cash/Debt

$1.8 billion / $14.3 billion

Dividend Yield

2.5%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 2,676 members who have rated Target believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, eajohnson1, succinctly summed up the Target bull case for our community:

Looks a little undervalued based on likelihood of growth. Has been generating cash steadily in last few years and using it to grow business or return to shareholders. Expansion to Canada seems natural, not forced; same with groceries & loyalty programs. Consumer confidence seems reliably back even if whole economy is not.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Target may not be your top choice.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

The article Why Target Is Poised to Keep Climbing originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Costco Wholesale. The Motley Fool owns shares of Amazon.com and Costco Wholesale. 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 Motley Fool has a disclosure policy.

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