Target Corp

Target is hitting an all-time high today. The company is firing on all cylinders. They have alleviated e-commerce concerns. Looking at evaluation, it is rallying up to catch up the evaluation of Walmart. A duopoly that will probably do fine. Would prefer Walmart more. There is also trade war concerns eventually. Right now, it is offloaded in the supply chain, but it could come down to the consumer.

This stumbled badly in Canada which set the stock back. Also, there has been a consumer pullback in the last year. The stock came back with Christmas sales, and things seem to be back to normal. Doesn't think there is anything special about this company, but it is a solid hold and you will do fine. Earnings are growing slowly.

When looking at this, you have to ask yourself if you are there for share price appreciation or for yield. If looking at this for yield, he would look elsewhere. 3.6% dividend is a good yield, but there are others that have a better balance sheet and growth trajectory.

(A Top Pick Jan 3/17. Down 3%.) He had been trying to take advantage of the lower type price realtors. It was cheap, but it got cheaper quickly. He got out of this pretty quickly.

It has struggled. She still owns it but would not recommend it as an entry point. She wants to see more positive reports from the holiday season. They are struggling to move more on line. It would not be her first choice for a retailer. It would have to be AMZN-Q or ULTA-Q, which is an experience, rather than just products.

Retail is a tough business. It looks cheap at 6 times, but it is a classic value trap. They have fallen behind in online retail. Avoid this one here.

This was trying to get through $80, and this sector had some disappointing earnings. It has come back again to levels it has held before at times when it wasn’t working out that well. $70 seems to be that target. This stock has been oversold. (Analysts’ price target is $78.07.)

Retail is very, very tough business. Had owned this at one point, but it had a nice pop and he sold. This would not be a long-term hold. The environment for retail is changing very dramatically because of Amazon (AMZN-Q).

(Top Pick Oct 14/14, Up 24.56%) It got down on the Canadian expansion and subsequent exit. He was a seller in the high $80s.

(Top Pick Sep 24/14, Up 28.03%) Everyone didn’t like it at the time. They restructured and it did quite well. Margins and earnings went up. You are going into a strong season for these retail companies. He will hold it until at least after Christmas.

(A Top Pick Aug 14/14. Up 42.5%.) Had felt this was a restructuring story. Valuation is at the top end of the range, but he still likes it. Wouldn’t aggressively buy it here.

(Top Pick July 8/14, Up 45.86%) Foreign exchange is part of it. He invested when he knew Canada would not do well. They are taking market share from Wal-Mart. The SU economy is growing by 4%.