CEO Quits; Is Now the Time to Invest in Target?
Shares of retail giant Target were down today after CEO Gregg Steinhafel announced his departure from the company. There are several reasons behind his departure -- failure to expand to Canada, and of course a devastating data breach late last year that left millions of Target customers exposed to hackers -- all of which boil down to the company's poor performance on the market. Shares of Target are down over 10% this year, while the broader market remains strong.
In today's video, Motley Fool analyst Michael Finarelli dives a bit deeper into Target and its recent struggles. Specifically, he doesn't like how the company has executed its Canadian expansion plans -- in fact, he's not a fan of competitor Wal-Mart's international expansion attempts. While Wal-Mart has seen some revenue from foreign markets, Michael suspects the company is just chasing growth for the sake of top-line growth, and that's not in shareholders' best interests.
So should investors get in on the action at Target? Michael believes that a gap in management is never a good thing, especially for a company that's taking fire from all sides like Target is, and that investors would be best served by watching and waiting.
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The article CEO Quits; Is Now the Time to Invest in Target? originally appeared on Fool.com.Mark Reeth, Michael Finarelli, and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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