Target Stock $TGT is down over 40% from all-time high and is underperforming the S&P 500 $SPX500 . Is Target Stock a buy?
Compared to other retailers such as Walmart $WMT and Kroger $KR , Target has customers with higher income since its business is about providing quality at the lowest possible cost. Therefore, its stores are cleaner and friendlier, offering a better shopping experience with its own in-house brands. And just like the other retailers, Target suffers from competition from Amazon $AMZN .
The main issue with Target right now is that with increasing inflation and a recession, the company had a large inventory buildup.
When we calculate the intrinsic value of Target, it looks expensive. Just because a stock is down 40%, doesn't mean that it is cheap.
Watch the full video on YouTube:
https://www.youtube.com/watch?v=Q7dWIdpH7RI&list=UUPO3uUyoXSaFWG-Ldq1mqEQ
Full analysis of Target:
https://ishfaaqpeerally.teachable.com/courses/662813/lectures/42164728