Why Soaring Target (TGT) Stock is a Strong Buy for 2020
Target TGT stock has soared 95% in 2019, as Wall Street and investors show their love for the retailer’s e-commerce strength and more. Target’s climb easily outpaces rival Walmart WMT and Amazon AMZN.
Target, like nearly everyone in retail, has boosted its business through digital and delivery. This helped TGT’s third quarter 2019 comparable sales jump 4.5%. Meanwhile, digital sales soared 31%, driven by its same-day fulfillment services, which include Order Pick Up, Drive Up, and Shipt.
Target has also redesigned stores and opened smaller locations. Plus, the retailer has thrived recently while the likes of Macy’s M and Nordstrom JWN fade, through its ability to attract younger and more affluent consumers through its own furniture, home décor, fashion brands, and more.
Target also announced a new share repurchase program and its dividend yield tops the 10-year U.S. Treasury and Walmart. On top of that, Target’s top and bottom-line growth estimates for 2019 and 2020 appear strong.
Target is currently a Zacks Rank #1 (Strong Buy). Plus, early overall 2019 holiday shopping numbers are recording breaking. “Looking ahead, we have ushered in the holiday season with an unwavering commitment to guest service that complements our highly differentiated, value-driven assortment, our exceptional in-store shopping experience as well as an unmatched suite of easy and convenient fulfillment options,” Target CEO Brian Cornell said in prepared remarks last quarter.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Nordstrom, Inc. (JWN) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
