We recently published a list of Top 10 Stocks Market Is Watching Today. In this article, we are going to take a look at where Target Corporation(NYSE:TGT) stands against other top stocks market is watching today.
Chris Grisanti, MAI Capital Management chief market strategist, said in a latest program on CNBC that the market is going through a shift towards value stocks from growth stocks.
“A lot of investors miss is that you have to choose a great company, but you also have to choose a great entry price. And the valuation, especially over the last several years, has really gotten out of whack as growth has outperformed value by the most ever that we’ve ever seen. So now we’re just kind of getting back.”
The analyst warned that the latest selloff is not the “healthy correction” we used to see in the past.
“The economically sensitive stocks leading the way down. You’ve got banks that are tanking, you got airlines that are tanking, the worst groups are the financials, the industrial, and the consumer discretionary like retailers. So this is the market saying economic slowdown. Now is it right? You know the old saw about the market predicting eight of the last two recessions—maybe it’s wrong. The problem is one, it’s different this time so people should pay attention, and two, what generally happens is things can fall even on irrational fears, and then they become self-fulfilling.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article we picked 10 stocks Wall Street is currently focusing on. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A woman purchasing groceries at a Target store, with a cart full of products.
Target Corporation (NYSE:TGT)
Number of Hedge Funds Investors: 49
Oliver Chen, TD Cowen senior retail analyst, said in a latest program on CNBC that he prefers Walmart and Costco over Target Corp (NYSE:TGT) and explained the challenges the discount department store is facing:
“We’re cautious on the consumer—cautiously optimistic. The consumer continues to be very choiceful and looking for bargains. We’re recommending Walmart and Costco, which offer a stronger value proposition and simply a lot more food. Target’s been under a lot more pressure because so much of the portfolio is discretionary. And what they really need to do to improve the comp store sales is increase pricing. They’re having problems in the home category and electronics. And as you think about Walmart versus Target—Walmart’s over 50% food; at Target, it’s about 20%.”
Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:
“Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter.”
Overall, TGT ranks 8th on our list of top stocks market is watching today. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
