What happened
It has been a good year for Target (TGT 3.29%) shareholders, as the stock gained 31% in the first half of 2019 compared to a 17% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
Image source: Getty Images.
So what
Investors have had plenty of good news to celebrate in the retailer's business this year, starting with a banner holiday season report that showed healthy customer traffic growth and robust demand across Target's portfolio of apparel and home goods. Like rival Walmart, the chain is enjoying its best expansion rate in years, partly thanks to a successful shift into multichannel retailing.
Now what
CEO Brian Cornell and his team have issued a bold prediction for 2019 that calls for market share gains across all of Target's main product categories and selling channels. Yet investors are even more excited about the prospect of rising profitability following a rough patch between 2015 and 2018.
In other words, it's finally time for the company's biggest investments, like upgrading stores to act as fulfillment centers and adding fast shipping capabilities, to start paying off in terms of faster sales and earnings growth.
