Target Share Price Forecast March 2022 – Time to Buy TGT?
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Shares of American big-box department store chain Target (NYSE: TGT) are in the green today, after closing at $224.90 as of March 2nd (19:56 EST). Target shares got a boost after the company posted strong fourth-quarter results. The company has impressed investors with its ability to manage rising costs brought by a tight labour market and industrywide supply-chain challenges. Target’s operating margin increased from 6.5% to 6.8% but its gross margin declined to 25.7% from 26.8% in the year-ago quarter.
Target – Technical Analysis
Target’s financial statement indicates a market cap of $107.755 billion with total assets worth $53.811 billion. Revenue for 2021 was at $106 billion with a profit margin of 6.55% compared to $93.56 billion in 2020.
Moving averages such as Exponential Moving Average (10)(207.99), Simple Moving Average (10)(203.73), Exponential Moving Average (20)(209.04), Simple Moving Average (20)(208.21) and Exponential Moving Average (30)(211.76) are indicating a buy action. On the other hand, oscillators such as Relative Strength Index (14)(62.27), Stochastic %K (14, 3, 3)(74.72), Commodity Channel Index (20)(131.41), Average Directional Index (14)(37.57) and Awesome Oscillator(−7.56) are neutral.
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Recent Developments
Target is the eighth largest retailer in the United States and is part of the S&P 500 Index. As of 2021 Target had 1,926 stores throughout the United States. Its retail formats include the discount store Target, the hypermarket SuperTarget, and “small-format” stores previously named CityTarget and TargetExpress. As of 2022, Target is still in the US but has attempted to expand into Canada in the past.
Over the past three years, Target shares have increased almost 200%. Target’s digital platform attracted customers during the early stages of the pandemic. They returned to Target stores as well as continued ordering online even after the lockdowns were lifted. This has given a boost to Target’s business. There have been a 10%, 29%, and about 60% increase in Target’s store sales, digital sales, and same-day services. Traffic increased by more than 12% while the company’s sales in all five of its product categories climbed in the double-digits. 12 million more customers became multi-channel shoppers at the end of 2020.
Target has also announced plans to make annual investments of $4 billion for store openings and revamps and to boost its fulfilment services and supply chain. It has opened 2 new supply chain locations and 29 new stores last year. Almost 10 of its owned brands have reached billion dollars. The company has also launched Brightroom, its home organization and storage brand. The company’s fiscal fourth-quarter results were robust and revealed that the following fiscal year could be stronger. Target’s comparable sales for the fourth quarter rose 8.9%. This is particularly impressive with adjusted earnings of $3.19 per share.
Should You Buy TGT Shares?
Target shares present an undeniable opportunity to buy for investors or at least start a position in this retail stock. Target has taken important investment decisions in areas such as pickup, its digital platform, and store remodels to better meet the needs of customers. The company has also done a great job of overcoming pandemic-related challenges.
With customers now flocking to both Target stores and online channels, the company is now in a profitable position. It is now becoming more efficient, allowing it to improve and strengthen its operating margins, despite significant macroeconomic cost pressures. Target is thus set to reward investors in the years to come. Considering this now is a good time to invest in Target shares.
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