TGT - Target Corporation

NYSE - Nasdaq Real Time Price. Currency in USD
78.90
+0.58 (+0.74%)
As of 12:27PM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close78.32
Open78.31
Bid78.80 x 800
Ask78.80 x 800
Day's Range78.05 - 79.28
52 Week Range60.15 - 90.39
Volume979,940
Avg. Volume5,275,141
Market Cap40.739B
Beta (3Y Monthly)1.03
PE Ratio (TTM)14.31
EPS (TTM)5.51
Earnings DateMay 22, 2019
Forward Dividend & Yield2.56 (3.27%)
Ex-Dividend Date2019-02-19
1y Target Est85.73
Trade prices are not sourced from all markets
  • Why Target (TGT) is a Top Dividend Stock for Your Portfolio
    Zacks3 hours ago

    Why Target (TGT) is a Top Dividend Stock for Your Portfolio

    Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Target (TGT) have what it takes? Let's find out.

  • Is Target (TGT) a Great Value Stock Right Now?
    Zacks3 hours ago

    Is Target (TGT) a Great Value Stock Right Now?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • Costco vs. Sam's Club: What's the Difference?
    Investopedia7 hours ago

    Costco vs. Sam's Club: What's the Difference?

    Big retailers like Walmart Inc. (WMT) and Target Corp. (TGT) use low prices to draw in customers, but this is not a model that works for everyone. Other retailers must find different ways to drive consumers to their businesses. We see those that focus on healthy foods, locally grown or made products, specialty niche stores, those that only carry high-end brands, those that only carry low-end brands, and in the case of Costco Wholesale Corp. (COST) and Walmart unit Sam’s Club, those that only sell in bulk. Costco is considered the original bulk retailer.

  • 3 Blue-Chip Stocks to Buy Right Now
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    3 Blue-Chip Stocks to Buy Right Now

    Today, we have highlighted three blue-chip stocks that look like buys at the moment amid the market's larger comeback, driven by growth from tech giants such as Netflix (NFLX), Facebook (FB), and Amazon (AMZN).

  • Amazon Unveils Belei to Boost Private Label Initiatives
    Zacks3 days ago

    Amazon Unveils Belei to Boost Private Label Initiatives

    Amazon (AMZN) unveils private-label skincare line called Belei to expand its share in the private label business.

  • Why Lululemon (LULU) Stock Looks Like a Buy Heading into Q4 Earnings
    Zacks4 days ago

    Why Lululemon (LULU) Stock Looks Like a Buy Heading into Q4 Earnings

    Lululemon (LULU) shares popped over 3% Thursday heading into the release of its fourth quarter financial results, as part of its larger 2019 climb. The yoga apparel and athleisure giant's bottom-line looks set to surge as it expands its menswear business, its global reach, and more.

  • 7 Retail Stocks That Will Continue to Rebound in 2019
    InvestorPlace4 days ago

    7 Retail Stocks That Will Continue to Rebound in 2019

    Retail stocks were hammered in late 2018 amid concerns that the global economy was slowing and that the global consumer was consequently losing confidence. The SPDR S&P Retail ETF (NYSEARCA:XRT) dropped 30% from early September 2018, to late December.Then, the post-Christmas rally happened. Retail stocks, and the market in general, staged a huge turnaround the day after Christmas. They have stayed on a solid uptrend ever since because global economic fundamentals have started to stabilize and improve, while the global consumer has regained confidence in 2019.All in all, the S&P Retail ETF is up 15% since Christmas Eve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the most part, this rebound in retail stocks should continue because the fundamentals continue to improve. Trade and FX headwinds are becoming less severe. The rate hiking headwind has turned into a accommodating monetary policy tailwind. Consumer confidence metrics across the globe, and in particular the U.S., are bouncing back. Job markets globally remain healthy. Wages globally are heading higher.Overall, the economic fundamentals today continue to support a strong retail environment for the foreseeable future. Consequently, the early 2019 rebound in retail stocks should continue over the next several months. * 10 Stocks on the Rise Heading Into the Second Quarter Which retail stocks will lead this continued rebound? Let's take a deeper look. Nike (NKE)Source: rodrigofranca via Flickr Category: Athletic Apparel % Gain Since Dec. 24: 28%Shares of global athletic apparel giant Nike (NYSE:NKE) have been on a tear in 2019. Since bottoming out in late 2018, Nike stock is up nearly 30%, and now trades at fresh all-time highs.Why the big rally? Nike has continued to expand its dominance in the athletic-apparel category using faster-than-peer product innovation -- an enhanced direct retail strategy -- and unique marketing campaigns that have energized the core customer base. As Nike has done this, North America sales growth has come back into solidly positive territory. International growth has remained hot. Margins have recovered. And the whole company is back to firing on all cylinders.This rally in Nike stock will continue because this dominance is nothing new. Nike has dominated the athletic-apparel scene for over twenty years now. Time and time again, competitors arise and threaten Nike's dominance. Time and time again, Nike responds effectively, crushes the competition and only expands its dominance. This will continue to happen for the foreseeable future, and it will keep Nike stock on a long-term upward path. Home Depot (HD)Source: Shutterstock Category: Home Improvement % Gain Since Dec. 24: 17%Shares of Home Depot (NYSE:HD) dropped big in late 2018 amid concerns that the U.S. housing market was finally cooling after years of red-hot growth. But as financial markets have rebounded in 2019, so has Home Depot stock. It's up nearly 20% since late 2018.Why the big turnaround? U.S. housing market fundamentals have stabilized and improved in 2019. Specifically, the Fed went from hawkish to dovish, and stopped hiking rates. That caused mortgage rates, which had been on a sharp run up in late 2018, to fall big in early 2019. Also, consumer confidence has bounced back, wages have continued to rise, the unemployment rate remains low, housing starts have come roaring back and home-improvement-related retail sales rose over 8% year-over-year in January 2019. * 5 Stocks To Buy for the Happiest Employees All these improvements will continue so long as U.S. economic fundamentals remain solid, which they should. Americans will keep buying and remodeling homes. And Home Depot's sales and profits will continue to rise. As such, so long as the U.S. economy remains on solid footing, the rebound in Home Depot stock should persist. Lowe's (LOW)Source: Mike Mozart via Flickr (modified) Category: Home Improvement % Gain Since Dec. 24: 20%The story at Lowe's (NYSE:LOW) parallels the story at Home Depot. The stock was killed in late 2018 on slowing U.S. housing market concerns. It's rebounded in a big way in 2019 as housing market fundamentals have stabilized and improved.Importantly, though, Lowe's appears to finally be gaining share against Home Depot for the first time in a long time. For the past several years, Home Depot has consistently out-comped Lowe's in a sign that Home Depot was gaining market share and Lowe's was losing market share. But to end 2018, the gap between Lowe's and Home Depot's comparable sales growth was the narrowest it's been in two years. In January 2019, Lowe's actually out-comped Home Depot.The implication? For the first time in a long time, Lowe's is leveling the playing field with Home Depot and actually gaining share in the home improvement market. Lowe's stock is still materially cheaper than Home Depot stock. As such, as home improvement stocks continue to rebound, Lowe's stock could be the big winner. Target (TGT)Source: Mike Mozart via Flickr (Modified) Category: General Merchandise % Gain Since Dec. 24: 26%In late 2018, shares of Target (NYSE:TGT) fell off a cliff as investors were spooked by slowing comparable sales growth and compressing margins against the backdrop of a slowing U.S. economy. Target stock dropped big. But it's also rebounded big since then, staging a 26% rally since Christmas Eve.The turnaround in Target stock was powered by a few things. First, the U.S. economy stopped slowing and started stabilizing. Second, the U.S. consumer regained confidence in early 2019 and general merchandise retail sales rose 2.2% in January 2019. Third, Target reported solid holiday-quarter numbers that underscored that Target remains a healthy growth company with a red-hot digital business and stable margins. * 3 Out-of-Favor Consumer Stocks to Buy This turnaround in Target stock will continue because the fundamentals remain favorable and the stock remains cheap. Given stable U.S. economic fundamentals and Target's newly developed omni-channel retail presence, this company projects as a stable low single-digit revenue grower and high single-digit profit grower over the next several years. Yet, Target stock trades at just 13x forward earnings. That's too cheap for that level of growth, meaning this rally in Target stock will persist. Ulta (ULTA)Source: Mike Mozart via Flickr Category: Health & Personal Care % Gain Since Dec. 24: 46%Shares of Ulta (NASDAQ:ULTA) have been on a roller coaster ride over the past several months. In late 2018, Ulta stock dropped nearly 30% in just over a month. In 2019, however, Ulta stock has rebounded by nearly 50% in just over two months.The big selloff in late 2018 was the result of a below-consensus holiday-quarter guide converging on a rich valuation. The big rebound has been the result of the company blowing the lid off that below-consensus guide and reporting very strong holiday-quarter numbers. It also helps that comparable sales growth accelerated, margins expanded and the forward guide was strong -- all against the backdrop of a resurgent U.S. consumer. Now, Ulta stock is now making new highs.Ulta stock will continue to make new highs for the foreseeable future because this company is getting its groove back. New product launches in late 2018 helped reinvigorate comparable sales growth back to the near 10% range. These new product launches will continue to drive healthy customer enthusiasm and traffic gains through 2019. As they do, Ulta's revenues and profits will continue to impress, and Ulta stock will stay on an uptrend. Foot Locker (FL)Source: Shutterstock Category: Athletic Apparel % Gain Since Dec. 24: 22%Foot Locker (NYSE:FL) stock dropped big in late 2018 amid slowing U.S. economy concerns. But as the U.S. economy has stabilized, Foot Locker stock has rebounded.The rebound in Foot Locker stock has been especially large (over 20% since Christmas Eve) because of a strong holiday-quarter earnings report that underscored healthy operating fundamentals for the company. Comps rose 10%. Margins expanded in a big way. Inventories fell. The guide was healthy. Investors cheered. Foot Locker stock popped. * 3 Bank Stocks Whacked Down by the Fed In the big picture, Foot Locker's numbers have been getting better for a long time now. Now, they are finally good again, and this tells me that the worst is in the rearview mirror for FL. Going forward, Foot Locker will remain an important and stable player in the athletic-apparel retail landscape. FL's growth profile, coupled with the current 11x forward earnings multiple, should be enough to keep Foot Locker stock on a winning path. Best Buy (BBY)Source: Best Buy Category: Electronics % Gain Since Dec. 24: 43%In late 2018, there was a rumor flying around that the consumer electronics space was rapidly slowing. Consequently, shares of Best Buy (NYSE:BBY) dropped nearly 50% in a matter of three months.That rumor was a bunch of hot air. In early 2019, Best Buy reported strong holiday-quarter numbers that included positive comparable sales growth, big digital sales growth, margin expansion and an above-consensus full-year guide. Those numbers were proof that Best Buy remains the leader in the still-growing consumer electronics space. Consequently, Best Buy stock rallied.Still, Best Buy stock is pretty cheap at just 12x forward earnings. That's too cheap for Best Buy, a company which should report positive comps and healthy margins for the foreseeable future thanks to secular tailwinds (the widespread emergence of IoT and AI technologies). As such, a cheap valuation and favorable growth fundamentals should keep BBY stock on an upward trend for the foreseeable future.As of this writing, Luke Lango was long NKE, HD, TGT, FL, and BBY. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Retail Stocks That Will Continue to Rebound in 2019 appeared first on InvestorPlace.

  • Barrons.com4 days ago

    Target Stock and Other Retailers Should Gain Because There’s ‘Pent-up Demand,’ Analyst Says

    Target and Dollar Tree stock, along with a few other retailers, should see a sunnier spring, Gordon Haskett says.

  • Target Stock Is Worth a Buy on Every Dip
    InvestorPlace4 days ago

    Target Stock Is Worth a Buy on Every Dip

    Between Dec. 24 and Mar. 20, Target (NYSE:TGT) stock staged an impressive rally and went from a low of $60.15 to a recent high of $78.77. The Minneapolis-based retailer with 1,845 stores across the U.S. has shown strong growth in recent quarters and I expect the positivity to continue for Target stock.Source: Mike Mozart via Flickr (Modified)Therefore, I suggest that long-term investors consider adding Target stock into a diversified portfolio. Here is why. Target Has Strong FundamentalsOn Mar. 5, TGT released its fourth-quarter financial results and posted its best sales numbers since 2005. Revenues came at $22.98 billion. The Street cheered both the better-than-expected Q4 earnings report and the 2019 earnings-per-share guidance of $5.90, which beat the consensus of $5.70.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter These results follow an already strong November and December trading update that the group released in January when it reported that its holiday period comparable sales had increased by 5.7%.One of the factors behind the impressive numbers has been the strength of the U.S. economy and the resiliency of the consumer despite the continuing U.S.-China trade war rhetoric. In addition, Target has been taking steps to win the confidence and patronage of consumers. For example, over the past year, the retailer has improved its supply chain and logistics operations, leading to cost and time savings in delivery and fulfillment practices.About 90% of retail sales still take place in stores nationwide. And Target has been investing in its stores by remodeling them as well as opening smaller-format stores in residential areas and on college campuses to bring in the foot traffic. According to the company, "Three-quarters of the U.S. population lives within 10 miles of a Target store." As part of its plan is to emphasize ease and convenience, Target has also introduced same-day delivery as well as curbside pickup at many locations.Its efforts to become a respected player in today's digital market are also paying off. After the data-breach incident of 2013, where information on over 40 million Target consumers was compromised, the retailer started investing heavily in the digital space and its e-commerce channel. For example, it has recently announced an upcoming partnership with Pinterest to integrate Lens, the visual search offered by Pinterest, to its online store. The 31% increase in digital sales that was announced in the quarterly results is now cementing Target's claim to have become an omni-channel retailer.TGT currently trades at a trailing price-to-earnings ratio of 14.3 and many investors may find value in that number. If the company continues to offer robust top-line growth and improving margins, Target's stock price could justify a higher valuation, too. For example, Walmart (NYSE:WMT) has a trailing P/E of 44.3 and Costco (NASDAQ:COST) 31.3. Therefore I am quite comfortable with the stock's valuation despite the run-up in TGT stock's price. Technical Charts for TGT StockOver the past few weeks, both long-term and short-term technical indicators for Target stock have broken their 2018 downtrends, moving steadily higher. As such, many of the widely watched technical indicators now suggest a bullish momentum heading into the stock.However, most retail stocks may be volatile in the coming weeks as we get updates on the state of U.S.-China trade negotiations. Also, there could be some short-term profit-taking following the strong gains in 2019.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find Target stock to be a compelling buy candidate and I'd regard any potential dip in the price as an opportunity to grab the shares for the long term. Within a year, I 'd expect the shares to trade at $90. * 7 5G Stocks to Buy as the Race for Spectrum Tightens Therefore, if you already own Target shares, you might want to hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3-5% below the current price point, to protect your profits to date.If you are an experienced investor in the options market, you may want to protect your portfolio with a covered call or possibly a put option spread with a three-month time horizon. If you do not yet hold TGT, you may want to wait several weeks to buy into the stock at the next dip. The Bottom Line on Target StockI believe that the rest of this decade could see new highs for the TGT stock price thanks to the growth tailwind in the business and execution by management. And anyone who buys can also enjoy dividend income, which now stands at a yield of 3.2%.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Target Stock Is Worth a Buy on Every Dip appeared first on InvestorPlace.

  • Simple Math Says You Should Buy the Dip in Kroger Stock
    InvestorPlace4 days ago

    Simple Math Says You Should Buy the Dip in Kroger Stock

    Shares of Kroger (NYSE:KR) fell off a cliff in early March after America's largest grocer reported fourth quarter numbers that sharply missed both revenue and profit estimates. The fiscal 2019 guide also missed consensus profit estimates. The double whammy of poor Q4 numbers and a weak 2019 guide spooked investors, and Kroger stock fell from $29 to below $25 in response.Source: Shutterstock This big drop in Kroger stock is an opportunity. In the big picture, Kroger has staying power as America's largest and favorite grocer and that positioning guarantees this company healthy revenue and profit growth for the foreseeable future.At just 11-times forward earnings, Kroger isn't priced for healthy growth. It's priced for no growth. This discrepancy can't last forever. Eventually, the valuation will correct higher. When it does, Kroger stock will rise to levels above $30.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt also helps that Kroger now near the bottom-end of a well defined multi-year trading range. Historically speaking, any time Kroger stock gets this low, it doesn't stay this low for long. * 5 Cloud Stocks to Help Your Portfolio Fly Thus, at $25, Kroger looks good here. The stock looks both fundamentally overvalued and technically oversold. It may take time for the reversal to happen. But, make no mistake, it is coming. By the end of 2019, prices above $30 look both achievable and fundamentally supported for KR stock. The Fundamentals Are GoodThe big picture fundamentals supporting Kroger stock are very good. In a nutshell, all those concerns that Amazon (NASDAQ:AMZN) was going to eat Kroger alive in the grocery sector after the Whole Foods acquisition were grossly overstated. Ever since then, Kroger has rattled off back-to-back years of positive comparable sales and revenue growth. The company is expected to report another positive top-line year in 2019.In other words, the Amazon threat hasn't really affected Kroger's traffic, sales, or reach. Instead, if you shopped at Kroger grocery stores a few years back, chances are high that you still shop there today. Why? Because grocery stores are sticky. Consumers like going to the same grocery store.They like knowing what to buy, knowing where those things are located in the store, knowing where to park, and seeing familiar faces. Consumers don't want to give up that familiarity or convenience for slightly cheaper (but still relatively expensive) Whole Foods prices.As such, Amazon hasn't really made a splash in this market. Sure, there's the Walmart (NYSE:WMT) and Target (NYSE:TGT) threats. But, those threats have been around for a long time, too, and they haven't had much impact on Kroger's sales or traffic either.Again, this comes back to familiarity and convenience, two things that are very important to the grocery shopping experience and which give grocery stores immensely sticky customer bases.Because of this, Kroger today remains America's largest grocer despite the multiple competitive threats that have emerged over the past several years. Also because of this, and because of Kroger's resilient track record of continued growth, Kroger should remain America's largest grocer for the foreseeable future.That positioning alone guarantees Kroger healthy revenue growth for the next several years. The Stock Is Undervalued and OversoldGiven Kroger's healthy big picture fundamentals, its stock is fundamentally undervalued at current levels.Right now, KR stock is trading at just 11-forward earnings, versus a five year average forward multiple of 15 and a market average forward multiple of 16. In other words, Kroger is really cheap. This cheapness only makes sense if profit growth will be muted over the next several years.It won't be. To be sure, margins are struggling right now. But, these struggles have a lot to do with fuel prices, and nothing to do with the long term fundamentals. Once fuel headwinds normalize, margins should normalize, too, and profits should grow thanks to healthy revenue growth, stable margins, and big buybacks.From a numbers perspective, I think some combination of low single digit revenue growth, stable margins, and big buybacks will push EPS towards $3.20 by fiscal 2025. Based on a historically average 15 forward multiple, that implies a fiscal 2024 price target for Kroger stock of $48.Discounted back by 8% per year (2 points below my normal 10% yield to account for the yield), that equates to a fiscal 2019 price target between $32 and 33. Thus, below $25, KR stock looks materially undervalued.The stock is also oversold here. Over the past several years, the lower-$20's have provided a solid line of defense for the stock on sell offs. In September 2017, a drop in KR stock to $20 led to a rally to $30 by January 2018. In March 2018, a drop in KR stock to $23 led to a rally to $32 by September 2018.History should repeat itself here, given stable long term fundamentals. As such, the March 2019 drop in Kroger stock to the lower-$20's should likewise end in a rally towards $30 over the next several months. Bottom Line on Kroger StockKroger is supported by stable and healthy long-term fundamentals. Those fundamentals imply that this company will remain the leader in the stable growth U.S. grocery industry for a lot longer.That stability isn't priced into KR stock today. Instead, KR stock is undervalued and oversold against a healthy fundamental backdrop. That set-up makes this dip in Kroger look like an attractive buying opportunity.As of this writing, Luke Lango was long KR, AMZN, and TGT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Simple Math Says You Should Buy the Dip in Kroger Stock appeared first on InvestorPlace.

  • Amazon's Getting Schooled in the Private-Label Game
    Motley Fool4 days ago

    Amazon's Getting Schooled in the Private-Label Game

    The e-commerce giant has hundreds of house brands, but only a handful that actually sell much. And most of those have one thing in common.

  • Should Investors Ignore Costco’s Valuation over Comps?
    Market Realist5 days ago

    Should Investors Ignore Costco’s Valuation over Comps?

    What Analysts’ Recent Activity Indicates about Costco Stock(Continued from Prior Part)Solid performance Shares of Costco (COST) are up 16.4% YTD (year-to-date) as of March 19. The strong uptrend in Costco stock is supported by the company’s

  • Will Private Labels Wake Up Amazon Stock?
    InvestorPlace5 days ago

    Will Private Labels Wake Up Amazon Stock?

    E-commerce data analytics firm Marketplace Pulse recently conducted in-depth research on private label brands on Amazon (NASDAQ:AMZN). The conclusion seemed unfavorable for Amazon stock. According to the firm, Amazon's private-label brand portfolio actually has more duds than studs.Source: Shutterstock The research suggests that Amazon's private-label business isn't growing. That could be the reason why Amazon's e-commerce growth machine has cooled rapidly. Indeed, over the past several quarters, Amazon's e-commerce business has gone from a 20%-plus grower which dominated the digital retail world to growing just above 10% and ceding market share to other digital retailers. * 5 Cloud Stocks to Help Your Portfolio Fly But there's another big takeaway from Marketplace Pulse's report, one that is bullish for Amazon stock. Namely, the report included a quote from an Amazon spokesperson who said that Amazon's private-label products represent less than 1% of the company's total sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's tiny. At other large retailers, the private-label business represents 30% or more of total sales. Thus, the bullish takeaway from the report is that Amazon's private-label business, with the right execution, could grow by leaps and bounds over the next several years.That would be big for Amazon stock. Most importantly, it would wake up the Amazon e-commerce- growth machine, reinvigorate investors' enthusiasm about Amazon stock, and spur more investors to buy AMZN stock. Furthermore, it would boost the company's margins, add firepower to what is already turning into a robust profit-growth outlook, and help AMZN grow into its valuation.Overall, a private-label surge could turn into a big deal for Amazon stock. Here's a deeper look. Amazon's Private-Label Business Is TinyAmazon is a big company. With over $230 billion of sales last year, Amazon is the second-largest retailer in the world, behind only Walmart (NYSE:WMT).But, for such a big retailer, Amazon's private-label business is really small. Amazon's private-label business represents less than 1% of its total sales. That means that Amazon's private-label business generates less than $2.3 billion of annual revenue.That's small. Over at Costco (NASDAQ:COST), the Kirkland brand alone represents nearly one-third of its total sales, or about $40 billion. Similarly, one-third of Target's (NYSE:TGT) total sales in 2018, or about $25 billion, were from owned and exclusive brands,. At Kroger (NYSE:KR), private-label -brand-unit share hit 30.5% in the fourth-quarter, which, at an annualized rate, represents about a $34 billion business.At many other big retailers, the private -label business runs anywhere from 15%-30%-plus of total sales, equating to $15 billion-$40 billion-plus of annual revenue.Next to those figures, Amazon's sub-1% private label penetration rate and roughly $2 billion private-label business are tiny. Amazon's Private-Label Business Could Be Really Big One DayAmazon's private label business could be really big one day.The math is pretty simple. An average private-label penetration rate of 25% on all of Amazon's 2018 revenue, excluding the sales of its cloud business, implies a private-label business of nearly $52 billion, versus its private-label business of about $2 billion today. That represents a 25-fold increase in private label sales. That's huge. Furthermore, it equates to an additional $50 billion revenue opportunity, for a company that reported $232 billion of sales in 2018. That means that AMZN could grow its top line 20%-plus by expanding its private-label business.Private-label products are made and sold by the company itself, reducing the role of middle men. Thus, private label sales increase margins. That means that, if AMZN increases its private-label business to 20% of its revenue, its bottom line would get a favorable bump of much more than 20%.In other words, this isn't small peanuts. It's a big deal.Now, the big question is: can AMZN do it? Can it turn a relatively small private- label business into a $50 billion-plus behemoth? The short answer is: yes. AMZN has done it before with other businesses, and it will do it again.The company has the data, reach, reputation, and brand equity necessary to sell Amazon-branded products on a large scale. The Marketplace Pulse research report partly corroborates this thesis. Although many of Amazon's private-label brands are duds, the ones with the name "Amazon" attached to them are doing very well, the report stated. That speaks volumes about this company's brand equity and reputation.Meanwhile, AMZN hasn't yet figured out a way to consistently utilize its wealth of consumer preference and shopping data to help it sell private-label products. But it's only a matter of time before the company does so. When it does, the company's private-label business will boom, especially considering that AMZN can put those products in front of millions of shoppers.So it does seem like only a matter of time before Amazon executes on its tremendous opportunity to create a huge private-label business. The Bottom Line on Amazon StockAmazon stock is a long-term winner, mostly because of this company's multiple, large growth levers. One underappreciated big growth lever is Amazon's opportunity in the private-label business. AMZN currently has one of the smallest private label businesses of any major retailer. With the right execution, that relatively small private-label business could become very large and raise the company's top line by 20%-plus and add far more to the bottom line.All in all, investors should stick with Amazon stock for many reasons, including its $50 billion private-label opportunity.As of this writing, Luke Lango was long AMZN, COST, TGT, and KR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Will Private Labels Wake Up Amazon Stock? appeared first on InvestorPlace.

  • What Analysts’ Recent Activity Indicates about Costco Stock
    Market Realist5 days ago

    What Analysts’ Recent Activity Indicates about Costco Stock

    What Analysts’ Recent Activity Indicates about Costco StockA couple of analysts initiate coverage on Costco On March 20, Nomura Instinet initiated coverage on Costco (COST) stock with a “neutral” rating and a target price of $230. Evercore ISI

  • Reuters5 days ago

    Target's Archer Farms coffee to be fair trade by 2022

    Target Corp's flagship coffee bags and pods of the brand Archer Farms will be certified fair trade by 2022, the company and Fair Trade USA told Reuters on Wednesday, a victory for that movement, which seeks to make sure producers are adequately compensated for their labor. Coffee futures are currently trading near 13-year lows, weighed down by a record-large Brazilian crop. Archer Farms, Target's flagship-owned coffee brand, sells about six million pounds of coffee each year.

  • Kroger (KR) to Divest Turkey Hill & Focus on Core Operations
    Zacks5 days ago

    Kroger (KR) to Divest Turkey Hill & Focus on Core Operations

    Kroger (KR) inks deal with Peak Rock to sell the Turkey Hill business as part of its efforts to trim its non-grocery offerings.

  • Amazon Is Showing a Bigger Appetite for the Food Business
    Market Realist5 days ago

    Amazon Is Showing a Bigger Appetite for the Food Business

    A Look at Amazon's Latest Moves to Refresh Its Strategy(Continued from Prior Part)Amazon is vying for an $800 billion opportunity Amazon (AMZN) is planning to set up a new grocery chain distinct from Whole Foods, according to a report from the Wall

  • Target tests self-service grab-and-go 'Snack Bar' in stores
    American City Business Journals5 days ago

    Target tests self-service grab-and-go 'Snack Bar' in stores

    "We are pleased with the guest response so far and are continuing to evaluate the concept," a spokesperson said.

  • Kidfluencers' Rampant YouTube Marketing Creates Minefield for Google
    Bloomberg5 days ago

    Kidfluencers' Rampant YouTube Marketing Creates Minefield for Google

    Siwa encapsulates many of the things that made YouTube the world’s most-watched video site. The 15-year-old kidfluencer also highlights how YouTube’s success with children has created an ethical and perhaps even legal minefield for its owner, Alphabet Inc.’s Google. In addition to shooting quirky videos, Siwa cuts endorsement deals and sells two branded apparel lines with Target Corp., the second-largest U.S. retailer.

  • Call It Reverse Showrooming: These Companies Are Cashing In on Their Physical Stores
    Motley Fool6 days ago

    Call It Reverse Showrooming: These Companies Are Cashing In on Their Physical Stores

    A few retailers are demonstrating that a vast, expensive network of selling space isn't necessarily a liability.

  • Top Ranked Income Stocks to Buy for March 19th
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