March 5, 2017

Target: A Better Bargain Than Ever?


Target (TGT) investors have seen the company’s stock go through a prolonged downturn over recent months. Unfortunately, this trend appears to be continuing.

On February 28, Target reported earnings that seriously disappointed. The stock fell from $67 to $57.50, and currently sits around ~$59.

It is important to remember that Target’s stock price is not necessarily indicative of the company’s actually per-share value.

Sometimes, stock prices become irrationally disconnected from the value of the underlying business. This is a good thing for the opportunistic investors.

It’s important to remember that Target is a high quality business with a strong history of rewarding shareholders. Target has raised its annual dividend payments for 46 consecutive years, which makes them a member of the elite Dividend Aristocrats (companies with 25+ years of rising dividends).

This article will discuss why Target’s decline presents a buying opportunity, rather than a reason for investors to fear.




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