Target Share Forecast February 2022 – Time to Buy TGT?
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Shares of American big-box department store chain Target (NYSE: TGT) are in the red today, after closing at $211.29 as of February 7th (19:59 EST). Existing Target shareholders are quite happy as the company has increased bout 200% over the past three years. While shoppers used to flock to Target’s digital platform to shop for essentials during the early stages of the pandemic, they continued to order online and resumed visits to Target stores once lockdowns ended. Target shares have been surging because of increased revenue generated from these sales.
Target – Technical Analysis
Target’s financial statement indicated that the market cap of the company is at $101.234 billion with total assets worth $54.411 billion. Revenue for 2020 was at $93.56 billion with a profit margin of 4.67% compared to $78.11 billion in 2019.
Moving averages such as Exponential Moving Average (10)(215.86), Simple Moving Average (10)(215.21), Exponential Moving Average (20)(218.94), Simple Moving Average (20)(219.11) and Exponential Moving Average (30)(221.87) are indicating a sell action. Oscillators such as Relative Strength Index (14)(36.39), Stochastic %K (14, 3, 3)(13.19), Commodity Channel Index (20)(−123.17), Average Directional Index (14)(30.78) are neutral.
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Recent Developments
Target Corporation operates 1,926 stores throughout the United States, and is ranked number 37 on the 2020 Fortune 500 list of the largest U.S. corporations by total revenue as of 2021. It has a lot of retail formats under its belt, such as the discount store Target, the hypermarket SuperTarget, and “small-format” stores previously named CityTarget and TargetExpress
The early days of the pandemic had no effect on Target’s business. It instead put target on track to succeed in both online and in-store. While Target already had contactless delivery options in place, the nature of the pandemic gave this part of Target’s business an extra push. This resulted in Same-day services , which is the company’s contactless pick up and delivery options climbing more than 200%. Target’s digital sales grew by almost $10 billion in 2020 during the same period. This pushed Target’s sales growth to the highest in 11 years combined.
In the most recent financial snapshop or the third quarter of last year. Shoppers had already returned to their usual routines — or settled into new ones. Target’s store sales, digital sales, and same-day services increased nearly 10%, 29%, and about 60%, respectively. Overall, the company’s sales in all five of its product categories climbed in double-digits and reported an increase in traffic of more than 12%. At the end of 2020, 12 million more customers became multi-channel shoppers at Target. These customers spend four times more than an in-store only shopper and 10 times more than a digital-only shopper over time.
Should You Buy TGT Shares?
Investors should be happy with the fact that Target has pledged to invest $4 billion annually in store openings and revamps which will boost its fulfillment services and supply chain. In 2021, it has opened 29 new stores and two new supply chain locations. It has recently launched Brightroom, its home organization and storage brand.
Right now, Target shares are a definite buy. It provides an opportunity initiate a position in this unstoppable retail stock and get some gains. The company has made smart decisions in areas such as pickup, its digital platform, and store remodels to better meet the needs of customers. This has obviously made Target a good choice for investors.
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