10 Best Defensive Stocks To Buy Now

6. Target Corporation (NYSE:TGT)

Stock Price as of August 16: $141.12

Average Analyst Price Target Upside as of August 16: 25.14%

Target Corporation (NYSE:TGT) is a prominent American retailer known for its extensive network of large discount department stores as well as its smaller-format stores, which include TargetExpress and CityTarget.

As one of the major retailers in the U.S., the company manages more than 1,900 locations nationwide. Its stores offer a wide variety of products ranging from household essentials and furniture to electronics, clothing, toys, and groceries. It features a broad assortment of items under both national and private-label brands. Among its more than 45 private labels are brands such as Good & Gather, Market Pantry, and Dealworthy, among others.

36 analysts have covered Target’s (NYSE:TGT) stock a Buy rating and as of August 16, the average price target of $176.60 has an upside of 25.14% from the present levels. The stock is among our best defensive stocks to buy now.

In recent years, Target (NYSE:TGT) has worked to improve its product offerings by forming exclusive partnerships and expanding its brand lines. The company has also improved its digital and omnichannel capabilities, alongside efforts to boost customer loyalty through revamped programs. These initiatives are designed to cultivate customer retention and strengthen sales in a competitive retail market.

In the first quarter, the company reported a 3.1% drop in total revenue compared to the previous year, largely due to weaker same-store sales. However, digital sales showed a modest increase of 1.4%, driven by nearly 9% growth in same-day services. The “Drive Up” feature, which allows customers to pick up their orders without leaving their car, saw a noteworthy 13% rise in sales.

Furthermore, EPS for the quarter was $2.03, slightly below the previous year’s $2.05 but within the forecast range of $1.70 to $2.10 set by management. The relaunch of the Target Circle loyalty program in April has been successful, adding over 1 million new members and reflecting strong engagement with the brand.

On August 7, Wells Fargo analyst Edward Kelly lowered the price target on Target’s (NYSE:TGT) stock to $160 from $175 and kept an Overweight rating. The firm anticipates a solid performance in the upcoming quarter, supported by achievable goals and ongoing margin improvements, although it noted potential challenges in the second half of the year due to broader economic conditions and consumer trends.

Overall, Target’s (NYSE:TGT) efforts to enhance its product mix, improve digital services, and engage customers more deeply position it well for future growth, which makes it a possibly appealing option despite some near-term uncertainties.