Ask Matt: Can I profit from Target?
Q: Can I profit from a Target revival?
A: Target is showing it's the big-box retailer with promise. The company is making progress in getting its mojo back - and investors are taking notice.
Shares of the retailer inched up Wednesday after the company reported better-than-expected adjusted profit for the fourth consecutive quarter. Target reported an adjusted profit for the quarter ended July 31 of $1.22 a share, beating expectations by a definitive 9%. The fact Target's profit beat expectations is in stark contrast with Walmart this week which came up short.
Investors seem to be more enthusiastic about Target than analysts, so far. Shares of the stock are up 37% over the past 12 months, strongly outperforming the roughly 6% gain by the Standard & Poor's 500 during the same time. So far this year, shares of Target are up roughly 6% - while the market is up a bit more than 1%. Despite these big gains, though, the average Wall Street analyst rates Target shares a "hold," which is about as negative as the street will get on a big stock. Analysts also say they see the stock hitting $83.86 a share in 18 months, which if correct, would be just 4% higher than current levels. The key will be if Target can boost long-term growth by more than the 10% expected.