Why Target Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail giant Target (NYSE: TGT  ) 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

$73.3 billion

Management

Chairman/CEO Gregg Steinhafel

CFO John Mulligan

Return on Equity (average, past 3 years)

18.7%

Cash/Debt

$788.0 million/$17.7 billion

Dividend Yield

2.1%

Competitors

Costco Wholesale

Kmart

Wal-Mart Stores 

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

On CAPS, 95% of the 2,569 members who have rated Target believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star witness1260, succinctly summed up the Target bull case for our community:

I have to say, I really like Target's business model. They've convinced people to pay a higher price for the same item at their store versus at a rival's (looking at Wal-Mart). ... I think they've created a significant advantage here with their branding. I think that's an advantage that can stick as well, because the economy is improving, and if you think about it Wal-Mart shoppers want to become Target shoppers because it tells them they're doing well financially. I can see Target continuing to grow long-term. Clearly they see opportunities for growth as well. They've jacked up [plant property and equipment] spending.

To learn about two other retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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