12 Oversold Value Stocks to Buy According to Hedge Funds

3. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 56

​Target Corporation (NYSE:TGT) 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 company operates large-format stores and an e-commerce platform, serving customers through an omnichannel model that includes same-day delivery, curbside pickup, and in-store shopping. TGT features a mix of national brands and exclusive private labels, with a focus on design, value, and customer experience.

Target Corporation (NYSE:TGT) outlined plans to deliver more than $15 billion in revenue growth over the next 5 years, focusing on holding or growing share across the majority of their categories. The company demonstrated strong performance in several categories, with Beauty showing nearly 7% sales growth and share gains, Apparel growing share over three quarters, and gains in Home, books, and toys during the holiday season. TGT’s digital business has grown to $20 billion, showing nearly 9% growth in Q4, while Target Plus marketplace has reached $1 billion in sales with expectations to achieve $5 billion in GMV within the next 5 years. The company’s loyalty program, Target Circle, added 13 million members over the course of the year, with Target Circle 360 membership quadrupling since its launch.

In terms of operational efficiency, Target Corporation (NYSE:TGT) has made significant progress in reducing inventory shrink, recovering about one-third of the previous 120 basis points of pressure as shrink improvement provided an approximate 40 basis point tailwind to the full-year operating margin rate. Looking ahead to 2025, management is planning cautiously with expected comparable sales around flat and a modest increase in operating margin rate, projecting adjusted EPS of $8.80 to $9.80. The company continues to invest in its infrastructure, with plans to invest $4 billion to $5 billion in stores, supply chain, and technology this year, including opening more than 20 new stores and remodeling many more across the chain. With a forward P/E of 10.53, TGT is one of the oversold stocks to buy according to hedge funds.