So remember just a couple weeks ago when we brought out word about the new, “weirdly hot” Santa Claus that retail giant Target (TGT) was looking to use to drive sales? While the holiday shopping season is now pretty much over but the returns, and the final number releases, analysts do not think much of Target’s marketing blitz. Investors offered the benefit of the doubt for Christmas, though, and bumped shares up fractionally in Christmas Eve trading.
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Word from Sizemore Capital Management chief investment officer Charles Sizemore is that Target has been in a general malaise “for a couple years now,” and thus, “…doesn’t have a quick fix” for its issues. It also did not help matters much that Target has over 1,950 stores across the United States and a much larger focus on “non-essential merchandise” than its competitors.
With the economy still looking shaky thanks to the surging prices on essentials for the last three years or so, non-essentials have fallen by the wayside for a great many potential customers out there. And certainly, good marketing has an impact on sales, but Sizemore looks for such an impact to only go so far with a few days left to 2024.
A Quiet Winner in Groceries?
While a lot of Target stock falls into the non-essential category, Target does still have a functioning grocery department, which kept it alive back during the pandemic. And a report from Chowhound offered some particular “secrets” of Target’s grocery department to keep in mind.
First, for those looking for discounts, shop on Tuesdays. Target has an “unofficial markdown schedule,” and food comes up on Tuesday, the report noted. So finding deals therein could be an easier proposition. The Target Circle app will also offer deals, and the store card gets 5% off everything. These deals may not be much by themselves, but every little bit helps. Particular deals can be found on the “end cap” displays at the end of every aisle, reports note.
Is Target Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TGT stock based on 12 Buys and 15 Holds assigned in the past three months, as indicated by the graphic below. After a 3.23% loss in its share price over the past year, the average TGT price target of $142.58 per share implies 7.69% upside potential.
