The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while an individual investor's panic never helps him or her, it's still a good idea to play devil's advocate with investments.
Consider bargain retailer Target
Here at the Fool, we like to consider both the good and the bad sides of an investment, so I'm highlighting three of the main bearish arguments on Target. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Target in CAPS.
1. Still a challenging environment
Even though Target reported improving third-quarter earnings, management quickly pointed out that some Wall Street analysts have a retail outlook that’s too rosy and out-of-touch with reality. The company sees a challenging environment ahead and is cautiously approaching upcoming quarters as consumers keep a tight grip on their wallets and competitors like Wal-Mart Stores
2. Weakening sales
3. Price wars
With retailers like Wal-Mart and Amazon.com
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Fool contributor Dave Mock now has three reasons to avoid the chocolate-covered coffee beans and energy drinks for snack time. He owns no shares of companies mentioned here. Amazon.com, Best Buy, and Costco Wholesale are Stock Advisor selections. Best Buy, Costco Wholesale, and Wal-Mart Stores are Inside Value selections. The Fool owns shares of Best Buy and Costco Wholesale. Once again, the Fool's disclosure policy was the life of the office holiday party thanks to the eggnog.