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Why Target Is Poised to Keep Poppin'

By Brian D. Pacampara, CFA - Apr 8, 2013 at 4:34PM

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Market-trouncing returns could be written in this 4-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, retail giant Target (TGT -0.75%) 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.

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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Stocks Mentioned

Target Corporation Stock Quote
Target Corporation
TGT
$154.20 (-0.75%) $-1.16

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