12 Most Oversold Large Cap Stocks to Invest in Now

1. Target Corporation (NYSE:TGT)

Relative Strength Index: 22.41

Target Corporation (NYSE:TGT) tops the list for being one of the most oversold stocks. It is a major US general merchandise retailer offering a broad assortment of products, including apparel, home goods, electronics, food and beverages, and household essentials. The business uses an omnichannel model to serve clients, offering curbside pickup, same-day delivery, and in-store shopping in addition to operating large-format stores and an online store. With an emphasis on style, value, and customer experience, the business offers a blend of national brands and premium private labels.

With an emphasis on maintaining or increasing market share in the majority of its categories, Target Corporation (NYSE:TGT) announced goals to generate over $15 billion in revenue growth over the next five years. The business performed well in several areas, including Beauty, which saw sales and share increases of about 7%; Apparel, which saw share increases across three quarters; and Home, Books, and Toys, which saw gains over the holiday season. While Target Plus Marketplace has achieved $1 billion in sales and is expected to reach $5 billion in GMV over the next five years, the company’s digital business has expanded to $20 billion, indicating nearly 9% growth in Q4. Over the year, 13 million new members joined the company’s loyalty program, Target Circle, which has quadrupled its membership since its inception.

Target Corporation (NYSE:TGT) has made great strides in decreasing inventory shrinkage in terms of operational efficiency. The company has recovered roughly one-third of the 120 basis points of pressure that had previously been present, as the improvement in shrinkage provided a tailwind of about 40 basis points to the operating margin rate for the entire year. Management is making cautious plans for 2025, estimating an adjusted EPS of $8.80 to $9.80 and predicting comparable sales to be stable, with a slight increase in the operating margin rate. In addition to constructing more than 20 new stores and renovating numerous others along the network, the firm aims to invest $4 billion to $5 billion in stores, supply chains, and technology this year.

Overall, Target Corporation (NYSE:TGT) ranks first among the 12 most oversold large cap stocks to invest in now. While we acknowledge the potential of large cap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TGT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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