TGT

Target Corporation

Consumer


Presented:02/06/2015
Price:$76.36
Cap:$48.60B
Current Price:$160.69
Cap:$74.03B

Presented

Date02/06/2015
Price$76.36
Market Cap$48.60B
Ent Value$62.19B
P/E Ratio32.11x
Book Value$25.81
Div Yield2.7%
Shares O/S636.96M
Ave Daily Vol5,570,000
Short Int3.80%

Current

Price$160.69
Market Cap$74.03B
Target Corporation operates general merchandise stores in the United States and Canada. It offers household essentials, including pharmacy, beauty, personal care, baby care, cleaning, and paper products; music, movies, books, computer software, sporting goods, and toys, as well as electronics that consist of video game hardware and software; apparel and accessories, such as apparel for women, men, boys, girls, toddlers, infants, and newborns, as well as intimate apparel, jewelry, accessories, and shoes. The company also provides food and pet supplies, including dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and pet supplies; and home furnishings and décor, such as furniture, lighting, kitchenware, small appliances, home décor, bed and bath, home improvement, automotive, and seasonal merchandise comprising patio furniture and holiday décor. In addition, it offers in-store amenities. The company distributes its merchandise through a network of distribution centers, as well as third parties and direct shipping from vendors. Further, it provides general merchandise through its Website, Target.com; and branded proprietary Target Debit Card and Target Credit Card. As of January 15, 2015, the company operated 1,934 stores, including 1,801 stores in the United States and 133 stores in Canada. Target Corporation was founded in 1902 and is headquartered in Minneapolis, Minnesota.

Publicly traded companies mentioned herein: Target Corp (TGT), Wal-Mart Stores Inc (WMT)

Highlights

Target (TGT) recently hired a new CEO (Brian Cornell), exited the Canadian market (which could allow management to buy back shares), and is poised to benefit from the massive decline in the price of oil and gasoline prices at the pump. The latter point has lifted all US retailers’ stocks over the past month, as investors view US equities and the tailwind created by lower energy/ fuel prices as relatively safe bets. The presenter sees these positives as “red herrings” and is short TGT heading into what he believes may be a period of underperformance and downward earnings revisions.

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Idea Discussion

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