15 Best Large-Cap Value Stocks to Buy as the Recession Hits

11. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 56

Forward P/E as of April 15: ~10.1x

Target Corporation (NYSE:TGT) operates as a general merchandise retailer. Fitch Ratings has highlighted the company’s strong US market position, well-recognized brand name, and good cash flow generation. Target Corporation (NYSE:TGT)’s operational success exhibits the strength of its market positioning and longer-term execution. Furthermore, its growth in discretionary categories, partly fueled by national brand collaborations and private brand introductions, aids the uniqueness of the company’s dual offering of discounted but differentiated merchandise, says the firm. Fitch Ratings also opines that Target Corporation (NYSE:TGT)’s healthy asset base and omnichannel focus can enable it to benefit from customer preference for cross-channel shopping.

Furthermore, Target Corporation (NYSE:TGT)’s digital initiatives can offer valuable data insights, allowing it to personalize offerings, improve overall operational efficiency, and optimize inventory management. With the retail landscape becoming digital-centric, the company’s emphasis places it well for long-term growth and competitiveness. Also, by optimizing the product mix and leveraging private label brands, the company can enhance its gross margins.

Target Corporation (NYSE:TGT) highlighted that a multi-year initiative is expected to build momentum in product categories with growth potential. The company’s signature same-day services were the fastest-growing mode of shopping in 2024 due to healthy growth from Same-Day Delivery powered by Target Circle 360. It focuses on accelerating these services’ growth in 2025.