Ask Matt: Is it finally time to buy Target?

Q: Is it finally time to buy Target?

A: Long-term investors know the turnaround at Target (TGT) is going to take time. The need for patience was highlighted by the retailer's most recent quarterly results.

Target's turnaround is certainly on track. Sales at stores open at least a year rose 1.9% during the quarter, which is at the top end of the 1% to 2% range management told investors to expect. Sales at stores open at least a year at Target also topped Walmart's 1.5% growth by that measure.

The retailer is also making progress on the profit front. Target reported an adjusted quarterly profit of 86 cents a share during the third quarter, which was up 59% from the same period a year ago. But despite all this seemingly good news, shares of Target fell 4% to $69.78 Wednesday as investors reacted to the news. Target investors may have simply gotten ahead of themselves. Target's profit in the most recent quarter merely matched expectations, a bit of a letdown after it beat targets in the previous four quarters. Analysts are bullish on the stock - saying it should be worth $83.50 a share in 18 months. But analysts also recognize it's going to take time and specialized retailers and online rivals are still a threat. The stock is rated a "hold" on average by analysts.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz