Okay, time to revisit my recommendation to purchase Target (TGT) stock. This company is positioned quite well. I recommend it strongly, and I’m not alone.
Consider what Standard & Poor has to say, for example:
Target’s attention to a more affluent customer base and its differentiation through merchandising and store experience has allowed the company to buck some of the negative trends that have hurt other discounters (and discount department stores) over the past couple of years. While recent results have shown that the company is still subject to the forces that are hurting sales and profits across most of the retail industry, we think Target’s strong management and superior positioning will allow the company to outperform most of the competition over the long run.
We’re pleased that Target has remained true to its long-term strategy: differentiation through style and shopping experience. The stores are clean and spacious, with wide aisles and relatively little in the way of intrusive in-store advertising and endcaps. The company specializes in attractive yet inexpensive clothing and housewares (dubbed “cheap chic”) and sells many exclusive product lines developed by trendy designers. Target regularly brings in new lines of merchandise to keep the selection fresh, giving customers a reason to shop often.
This is a good pick, and the stock is selling for cheap. Now is a great time to buy it!