10 Best Quality Stocks to Buy According to Analysts

8. Target Corp. (NYSE:TGT)

Average Upside Potential: 20.32%

Number of Hedge Fund Holders: 52

Target Corp. (NYSE:TGT) operates a chain of discount department stores and hypermarkets and is the seventh-largest retailer in the US. It’s known for its convenient locations, competitive prices, and a variety of exclusive brands. It also offers online shopping and in-store pickup options for added convenience.

Earlier this year, the company integrated GenAI into the handheld devices in its stores, providing its team with rapid access to best practice documentation and the ability to quickly receive straightforward responses to common customer questions. Team members have used the technology over 50,000 times since its full roll-out, giving answers in less than a minute.

Revenue amounted to $25.45 billion in the second quarter of fiscal 2025, up 2.75% from a year-ago period, driven entirely by traffic. Its digital sales grew, with same-day services like Target Circle 360 and Drive Up growing even faster. These services make up most of its digital sales and give it an advantage over competitors. Drive Up is especially successful, bringing in over $2 billion in FQ2 and over $4 billion so far this year. Overall, the stores and online sales are doing well, and more people are shopping at the company. Sales in clothing, one of its main categories, increased by 3%.

Target Corp.’s (NYSE:TGT) loyalty program, Target Circle, grew by 2 million new members in the quarter, reaching 100 million total members. During a promotion in July, it added hundreds of thousands of new cardholders and Target Circle 360 members.

The company donated $2.5 million this year to help communities affected by disasters. After Hurricane Beryl, Target Corp. (NYSE:TGT) supported the Red Cross, Team Rubicon, and other organizations to provide aid to people in Houston.

Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:

“Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter.”