Latest news with #TargetCorporation
Yahoo
16 hours ago
- Business
- Yahoo
Why Target (TGT) Appeals to Shariah-Conscious Dividend Investors
Target Corporation (NYSE:TGT) is included among the 11 Best Halal Dividend Stocks to Buy Now. A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT)'s stock has dropped from the highs it reached during the pandemic, following a slowdown and eventual decline in its sales growth. The stock has also tumbled this year, falling by nearly 25% since the start of 2025. That said, Target Corporation (NYSE:TGT) has consistently been a reliable choice for income-focused investors, boasting a 54-year track record of annual dividend increases, earning it a place among Dividend Kings. In June, the retailer raised its dividend by 1.8% to $1.14 per share, signaling its ongoing commitment to that streak despite current business challenges. With a dividend yield of 4.4%, as of July 18, the stock remains attractive. Though Target Corporation (NYSE:TGT) has faced some headwinds, it continues to generate solid profits. Even if its earnings come in at the lower end of its full-year forecast, the dividend payout ratio would stay below 70%, indicating that the dividend is on solid ground for the foreseeable future. While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio


Globe and Mail
2 days ago
- Business
- Globe and Mail
Does Target's Store-as-Hub Model Still Offer a Competitive Edge?
Target Corporation 's TGT store-as-hub model remains a pivotal competitive moat, seamlessly blending the physical and digital shopping experiences to enhance customer convenience. Despite facing macro pressures, Target has leaned heavily on its nearly 1,981 store locations (as of May 3, 2025) to drive both in-store and digital fulfillment. 96% of first-quarter fiscal 2025 sales volume were fulfilled through stores, underscoring the efficacy of this model. The model enables faster delivery, enhanced customer convenience and cost efficiencies that pure-play e-commerce retailers struggle to match. Same-day services, including Drive Up and same-day delivery through Target Circle 360, are tightly integrated into this store-as-hub network. These offerings have shown robust momentum, with same-day delivery growing more than 35% in the last reported quarter. Furthermore, the average "click to deliver" speed improved nearly 20% year over year, with more than 70% of first-quarter digital orders fulfilled within a single day. This infrastructure actively drives higher engagement and supports the digital ecosystem, including Roundel and Target Plus. Furthermore, ongoing store remodels and commitment to opening about 20 new stores indicate Target's belief in this strategy. While competitors may chase similar omnichannel capabilities, Target's embedded network and operational experience position it to maintain a meaningful advantage in fulfillment speed. Despite recent sales challenges, the store-as-hub model remains integral to Target's growth playbook, offering flexibility, efficiency and relevance in the current retail landscape. How WMT and BBY Leverage Store-as-Hub Models Compared to TGT Walmart Inc. WMT continues to strengthen its store-as-hub model, using its expansive store network to power same-day pickup and delivery. Walmart's integration of stores with digital fulfillment remains a key competitive advantage, supporting its U.S. e-commerce orders through store-based operations. Walmart's ongoing investments in automation and last-mile delivery reinforce this strategy, allowing it to compete aggressively on speed and convenience. Best Buy Co., Inc. BBY also leans heavily on its store-as-hub strategy, utilizing its store fleet to fulfill a significant portion of online orders through same-day pickup and ship-from-store. Best Buy's stores enable rapid fulfillment, while enhancing operational efficiency. Best Buy's ability to leverage physical locations as fulfillment hubs strengthens its competitive positioning. Target's Price Performance, Valuation and Estimates Target stock has risen 10.4% over the past three months compared with the industry 's growth of 0.3%. Target's forward 12-month price-to-earnings ratio of 12.99 reflects a lower valuation compared with the industry's average of 31.61. TGT carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Target's current financial-year sales and earnings per share implies a year-over-year decline of 1.8% and 14.8%, respectively. Target currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report Best Buy Co., Inc. (BBY): Free Stock Analysis Report
Yahoo
16-07-2025
- Business
- Yahoo
Can TGT's AI Strategy Drive a Faster & Smarter Retail Transformation?
Target Corporation TGT is betting on artificial intelligence to help it move with greater speed and precision in an increasingly volatile retail environment. Through its newly announced Enterprise Acceleration Office, the company plans to embed AI more deeply across its business to eliminate inefficiencies, accelerate decision-making and strengthen execution. Management has made it clear that the intent is not just incremental improvement but a step-change in how quickly the company can adapt to evolving consumer trends and competitive is already seeing benefits of technology-led improvements in its operations. In the first quarter of fiscal 2025, the company improved delivery times by nearly 20% year over year, boosted same-day services by 36%, and achieved higher inventory availability, all while keeping costs disciplined. Much of this progress came from smarter, automated inventory allocation, fulfillment routing and shrink management — areas wherein AI and machine learning are starting to deliver real views AI as critical to unlocking agility at scale. By automating manual processes and surfacing better insights, the company can free up employees to focus on higher-value activities and respond faster to market changes. This is particularly important as consumer behavior becomes less predictable and competitors invest in similar also expects AI to improve the customer experience directly in the longer term through more personalized Target Circle offers, smarter pricing and promotions, and better digital assortment recommendations. While investments are ongoing, the company believes that AI will be a cornerstone of its transformation, helping it deliver relevance, speed and value in a fast-moving retail landscape. Walmart Inc. WMT is increasingly leveraging artificial intelligence to improve its supply chain, delivery speed and overall customer experience. The company has seen significant growth in sub-three-hour deliveries, which surged 91% year over year, driven by AI-powered automation and smarter routing at using AI-driven forecasting and inventory optimization, Walmart continues to adapt to demand shifts, enhance efficiency, and sustain a seamless and competitive omnichannel retail Buy Company Inc. BBY is embedding artificial intelligence into its digital platforms and customer service to boost engagement and efficiency. An AI-powered search with conversational prompts improves product discovery at Best Buy. The company also credits AI for record satisfaction and lower care costs, reinforcing Best Buy's technology leadership. The TGT stock has risen 15.9% over the past three months compared with the industry's growth of 2.7%. Image Source: Zacks Investment Research Target's forward 12-month price-to-earnings ratio of 13.41 reflects a lower valuation compared with the industry's average of 32.13X. TGT carries a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for TGT's fiscal 2025 earnings implies a year-over-year decline of 14.8% and the same for fiscal 2026 indicates growth of 7.9%. Estimates for fiscal 2025 and 2026 have been upbound 4 cents and 8 cents, respectively, in the past 30 days. Image Source: Zacks Investment Research Target currently carries a Zacks Rank #4 (Sell).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Best Buy Co., Inc. (BBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-07-2025
- Business
- Yahoo
Is Target Corporation (TGT) a Strong Buy for Passive Income?
Target Corporation (NYSE:TGT) is included among the 10 Best Passive Income Stocks to Buy Now. A woman purchasing groceries at a Target store, with a cart full of products. In June, the company declared a 2% increase in its quarterly dividend to $1.14 per share. This was the company's 54th consecutive year of dividend growth. In addition, it has paid 232 consecutive dividends since its inception in 1967. As of July 10, the stock has a dividend yield of 4.42%. Target Corporation (NYSE:TGT) generated strong earnings in the first quarter of 2025. Its revenue of $23.8 billion, fell slightly by nearly 3% on a YoY basis. However, the company's digital comparable sales rose by 4.7%, driven by over 35% growth in same-day delivery services through Target Circle 360 and ongoing gains in Drive Up orders. Moreover, it returned $510 million to shareholders through dividends during the quarter, which marked a 1.8% increase from the same period last year. Target Corporation (NYSE:TGT) runs nearly 2,000 retail locations alongside its online store, with the goal of delivering everyday joy to families. Since 1946, the company has committed 5% of its profits to community support, contributions that now total millions of dollars each week. While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio
Yahoo
07-07-2025
- Business
- Yahoo
Shift in Consumer Spending Challenged Target (TGT) in Q2
ClearBridge Investments, an investment management company, released its 'ClearBridge Large Cap Growth Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the growth stocks rebounded from tariff uncertainty, with technology and communication services sectors leading in the return to a risk-on environment. The S&P 500 Index returned 10.9% in the quarter, while the technology-heavy NASDAQ Composite soared 17.7%. The benchmark, the Russell 1000 Growth Index, rose 17.8% in the quarter, outperforming the Russell 1000 Value Index. Against this backdrop, the strategy underperformed its benchmark in the second quarter. IT and communication services sectors contributed to the performance while the health care sector detracted. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second quarter 2025 investor letter, ClearBridge Large Cap Growth Strategy highlighted stocks such as Target Corporation (NYSE:TGT). Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was 6.93%, and its shares lost 28.55% of their value over the last 52 weeks. On July 3, 2025, Target Corporation (NYSE:TGT) stock closed at $104.06 per share, with a market capitalization of $47.28 billion. ClearBridge Large Cap Growth Strategy stated the following regarding Target Corporation (NYSE:TGT) in its second quarter 2025 investor letter: "After making progress on margin expansion through the first half of 2024, mass market retailer Target Corporation (NYSE:TGT) has more recently been challenged by continued shifts in consumer spending away from discretionary categories, like home and electronics, which make up the majority of the company's sales and carry higher margins. Tariffs on imports from China are likely to further pressure Target's business. Despite the company's execution to protect margins in a difficult operating environment, we see risks weighted to the downside, leading us to exit the position." A woman purchasing groceries at a Target store, with a cart full of products. Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 62 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the first quarter, compared to 56 in the fourth quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Target Corporation (NYSE:TGT) and shared the list of stocks that Jim Cramer recently commented on. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio