Wednesday, May 28, 2014

Recent Buy - Target Corporation (TGT)

Before I started my blog my last stock purchase on 5/17/14 was:
11 shares of Target Corporation (TGT) for $58.02 per share.
Target is one of the worlds biggest retailers and has been under a lot of heat due to a security breach in their credit card systems. (TGT) has decreased by -13.41% in the last 6 months and at these current prices I felt a need to buy. Target is currently on a road to recovery but they have a long way to go. Online retailers such as Amazon continue to dominate Walmart and Target with their great prices. Do you think Target will be the next KMart? I would say hell no, and the reason is Target sells quality merchandise unlike Walmart. I can buy quality furniture, clothes, organic food, etc. at Target. Target Corporation reported a huge drop in Q1 earnings last week, as expected with all of that headlines they have been in. The company's two biggest blunders were the botched Canadian expansion and the data breach. These two mishaps  are still weighing down its performance. But for how long?  It seems revenue is holding up well in the U.S., but profitability is under pressure.

Anyone else like Target (TGT) at this price? Do you think Target is on the road to recovery? Thanks for reading!


  1. I know TGT is on everyone's mind these days because of all the trouble it has experienced in recent days but I just can't get behind the retailer these days or most retailers in general. In fact the only "retailer" I do like is GWW. Just my 2 cents. Thanks for sharing!

  2. I agree it's hard to pick a retailer these days just like I can't get behind an automotive company. The competition is stiff. And we all know when the market comes down, the retailers are the ones in the front lines. GWW looks interesting and I will have to take a peek at them tonight. Good luck investing and thanks for stopping by!

  3. We bought Target (at $56.90) and think the future still looks bright for this retailer...definitely not the next K-Mart. They have 42 consecutive years of dividend increases with a payout ratio of only 43%. I think this company will reward patient investors...meanwhile collect the dividend and wait. :)

    Best wishes in your personal journey!

  4. AFFJ,
    I also think Target will keep growing as a company and those of us who are patient will keep being rewarded with their hefty dividends. I am Long on TGT and with me being only 29 years of age I am hoping to keep them for the next 30 years. I can see Target being around for the next 30 years because they have been able to adapt to what the consumers want. For example they now offer plenty of organic foods which has been a buzz lately in my town. With people trying to eat healthier, this has been a great addition to my local Target. Consumers like myself are willing to pay the extra few dollars for quality food over foods with artificial ingredients. Just one of the reasons I picked them up last month. Thanks for sharing! Good luck investing!

  5. Count me in among those interested in Target at current prices. Even though the P/E looks high right now, it's just because of the deflated earnings as a result of the data breach and slower than expected roll out in Canada. Once things get back to normal, I think we'll all look back and see that this period was a great time to pick up shares.

    Best wishes,