12 Worst Depressed Stocks To Buy Now

8. Target Corporation (NYSE:TGT)

52 Week Range: 103.46 – 181.86 

Current Share Price: $104.70

Analyst Upside Potential: 32.76%

1-Year Performance: -37.59%

Number of Hedge Fund Holders: 56 

Target Corporation (NYSE:TGT) operates as a general merchandise retailer, offering a wide range of products through both physical stores and digital channels. The products that the company offers range from everyday essentials to fashion products and electronics.

Carillon Eagle Growth & Income Fund mentioned the company in its Q4 2024 investor letter, stating that Target Corporation (NYSE:TGT) dramatically missed its earnings expectations, despite positive sales figures. This was attributed to disappointing margins caused by higher expenses. Moreover, while the traffic increased, prices were lower as consumers sought value and shopped during promotional periods. The fund also noted that the one-time decision to re-route inventory ahead of an East Coast port strike significantly affected the company’s performance.

During the fiscal fourth quarter of 2024, the company emphasizes its role as a destination for on-trend, affordable products that offer a unique shopping experience. It has plans to invest $4–$5 billion annually in stores, supply chains, and technology to enhance its operations and customer experience. Moreover, it also aims to drive $15 billion in revenue growth over the next five years, focusing on holding or growing market share across most categories. However, due to the decrease of more than 37% in its share price, it ranks as one of the worst depressed stocks to buy now.

Carillon Eagle Growth & Income Fund stated the following regarding Target Corporation (NYSE:TGT) in its Q4 2024 investor letter:

“Target Corporation (NYSE:TGT) missed earnings dramatically. The company’s sales were positive, but margins were disappointing due to higher expenses. While traffic was up, prices were down; consumers continued to seek value and shop during promotional periods. A one-time decision to re-route inventory ahead of the East Coast port strike also explains a large part of the company’s performance.”