11 Most Undervalued Quality Stocks to Buy Now

9. Target Corp. (NYSE:TGT)

Forward P/E Ratio as of April 14: 10.22

Number of Hedge Fund Holders: 56

Target Corp. (NYSE:TGT) is a general merchandise retailer in the US. It sells merchandise through periodic design and creative partnerships, shop-in-shop experience, and in-store amenities. It sells its products through its stores and digital channels like Target.com. Notably, it’s the fifth-largest digital grocer in the US.

Tar-zhay is a term coined by customers for Target’s emphasis on affordable and on-trend products. The company’s merchandising, or Tar-zhay strategy hinges on a unique product mix, such as a $31 billion portfolio of owned brands. About 25% of these exclusive brands generate at least $1 billion in annual sales. This assortment directly translates to increased customer traffic. For instance, the company saw ~7% sales growth and share gains in its Beauty segment.

The company actively engages with trends, which is highlighted by the record-breaking sales of its Taylor Swift exclusives recently. In January alone, Target Corp. (NYSE:TGT) introduced 2,000 new wellness products, with 600 being exclusive to the company. The company’s online marketplace called Target Plus has also grown to a $1 billion business and features more than 1,500 trusted partners and shows double-digit growth.