10 Cheap Food Stocks to Buy According to Hedge Funds

4. Target Corporation (NYSE:TGT)

Forward P/E: 14.66

Number of Hedge Fund Holders: 56

Target Corporation (NYSE:TGT) is a retail giant operating over 2,000 discount department stores and hypermarkets across the US and Canada. It serves its customers an array of items, including food, everyday essentials, differentiated merchandise at discounted prices, and general merchandise. Its merchandise categories span food and beverages, home furnishing and decor, and others.

Over the past year, the company has increased its operating income steadily while preserving a strong financial foundation. It benefits from strong liquidity, supported by a clean balance sheet free of intangible assets and a robust return on invested capital (ROIC) of 11.5%. In the first nine months of 2024, the company generated $4.07 billion in operating cash flow and held $3.4 billion in cash and cash equivalents by the end of the quarter. Target Corporation (NYSE:TGT) boasts a solid dividend history and a strong financial position, which enabled the company to return $516 million to shareholders through dividends.

In January, the company announced that it is focusing on its commitment to wellness, with plans to introduce more than 2,000 new items across multiple categories, including more than 600 Target exclusives. The company also has a 53-year streak of continuous dividend growth, and offers a quarterly dividend of $1.12 per share with a dividend yield of 3.56%, as of February 24.