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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Target (TGT) ten years ago? It may not have been easy to hold on to TGT for all that time, but if you did, how much would your investment be worth today?
Target's Business In-Depth
With that in mind, let's take a look at Target's main business drivers.
Target Corporation (TGT) has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. The company has been making investment in technologies, improving websites and mobile apps and modernizing supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players. Its acquisition of Shipt to provide same-day delivery of groceries, essentials, home, electronics as well as other products is worth noting.
Founded in 1902, Target provides an array of goods ranging from household essentials and electronics to toys and apparel for men, women and kids. It also houses food and pet supplies, home furnishings and décor, home improvement, automotive products, and seasonal merchandise.
This Minneapolis, MN-based company also offers in-store amenities, consisting of Target Café, Target Photo, Target Optical, Portrait Studio, Starbucks, and other food service offerings. Target operates more than 1,900 stores.
A greater number of general merchandise stores provides an edited food assortment, including perishables, dry grocery, dairy, and frozen items. The company's stores, which are larger than 170,000 square feet, offer a full line of food items comparable to traditional supermarkets.
The company's small format stores, which are smaller than 50,000 square feet, offer curated general merchandise and food assortments. The company's digital channels include a wide merchandise assortment, including many items found in stores, along with a complementary assortment.
Some of the company's Owned Brands includes: A New Day, Cat & Jack, Cloud Island, Made By Design, Opalhouse, Prologue, Project 62, Ava & Viv, Smith & Hawken, Wild Fable and Wine Cube.
Some of the company's Exclusive Brands includes: C9 by Champion, Hand Made Modern, Kid Made Modern, DENIZEN from Levi's, Fieldcrest, Genuine Kids from OshKosh, Isabel Maternity by Ingrid & Isabel and Umbro.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Target ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2011 would be worth $5,144.59, or a gain of 414.46%, as of July 5, 2021, and this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 224.88% and gold's return of 13.32% over the same time frame.
Looking ahead, analysts are expecting more upside for TGT.
Shares of Target have risen and outpaced the industry in the past six months. The company has been deploying resources to enhance omni-channel capabilities, come up with new brands, refurbish stores and expand same-day delivery options to provide seamless shopping experience. The company has been making multiple changes to its business model to adapt and stay relevant in the ever-evolving retail landscape. Target’s better-than-expected first-quarter fiscal 2021 performance is the testimony of the same, wherein both the top and the bottom lines grew year over year. Markedly, comparable sales increased for the 16th straight quarter, gaining from strength in both store and the digital channel. Management envisions positive comparable sales to persist throughout fiscal 2021 with full-year operating margin rate to be well above fiscal 2020 rate.
Shares have gained 6.59% over the past four weeks and there have been 12 higher earnings estimate revisions for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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