5 Best Reopening Stocks to Buy Now

4. Target Corporation (NYSE: TGT)

Number of Hedge Fund Holders: 66

Target Corporation (NYSE: TGT) is a retail corporation and the eighth-largest retailer in the U.S. The company was founded in 1902 and has over 1,900 stores located in the U.S.

Target Corporation (NYSE: TGT) reported strong Q1 2021 results. The company’s comparable sales grew by 22.9%, with a 50% growth in digital sales. The company also expects mid-to-high single-digit growth in comparable sales in FY21 and has also increased its dividend by 32%. The chief investment officer at Laffer Tengler Investment, Nancy Tengler, reported that Target Corporation (NYSE: TGT) could certainly benefit because of stores near population as 75% of the U.S. population lives within 10 miles of a Target store. Moreover, the company’s initiative of same-day delivery of in-store purchases would help boost sales. Recently, Stifel raised its price target on Target Corporation (NYSE: TGT) to $280, with a ‘Buy’ rating on the shares. Target Corporation (NYSE: TGT) has delivered an 89.5% return to shareholders in the past year.

As of Q2 2021, 66 hedge funds tracked by Insider Monkey have positions in Target Corporation (NYSE: TGT), up from 60 in the previous quarter.

LRT Capital Management released its first-quarter 2021 investor letter and mentioned Target Corporation (NYSE: TGT) in it. Here is what the firm has to say:

“Target, the Minneapolis-based retailer, continues to fire on all cylinders as the company has reported two quarters in a row of +20% revenue growth (5% traffic growth + 15% average basket size6), coupled with the strongest EBITDA margins in over four years. The company has successfully navigated the Covid-19 pandemic with online sales growing by 155% and 118% during Q3 2020 and Q4, respectively.

On March 2nd, the company reported another stellar quarter, with same-store sales growing by over 20%, and both earnings (+57% YoY) and revenues (+21% YoY) beating estimates. The shares are up 14.11% year-to-date. We believe the shares are a bargain 23x trailing and 20x forward earnings.”