We recently published a list of Top 10 Stocks to Watch Ahead of May. In this article, we are going to take a look at where Target Corp (NYSE:TGT) stands against other top stocks to watch ahead of May.
Aswath Damodaran from NYU Stern School of Business said in a latest interview with CNBC that while investors are “celebrating” positive results of a few major tech companies, the problems haunting these firms will take a while to show up in their results. However, Damodaran, also known as ‘Dean of Valuation,’ said it won’t be prudent to “give up” entirely on Mag. 7 companies.
“They can consolidate their advantage. In a weird way, again, all these troubles might play into the hands of the Mag 7, because the more troubles there are, the more flexibility gets rewarded. And as you pointed out, these companies are incredibly flexible, incredibly adaptable. We saw that with COVID, we saw that in 2022 with inflation, and I’m convinced you’re going to see it again. Doesn’t mean you load up on the Mag 7, but if you’ve never owned them, you had a chance to buy into at least one or two of them in the last month. You might have missed that chance, but the chance was there. So I wouldn’t give up that easily on the Mag 7.”
Damodaran said investors experienced a lot of “trauma” in April. He argued against reactionary investing and said that when investors respond to daily events and news cycles, they damage their portfolios.
“Maybe the best thing investors could have done is left at the start of the month, gone somewhere without internet service, and come back at the end of the month. Because everything we do is reactive, and often when you’re reacting to day-to-day events, you’re going to end up doing more damage to your portfolio than helping.”
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 analysts are talking about as the chaotic month of April nears its close. With each stock, we have mentioned its latest hedge fund sentiment. 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).
Target Corp (NYSE:TGT)
Number of Hedge Fund Investors: 49
Jim Cramer was recently asked about Target Corp (NYSE:TGT). The CNBC host recommended caution amid the impact of tariffs:
“It’s down 30%. It sells at 10 times earnings, but the tariffs are going to hurt it. And I think their pricing is not reasonable enough, and that makes me reluctant to pound the table. I’ve got a lot of stocks where there’s questionable stuff, and I can’t pound the table on them. If anything’s questionable, everything’s got to be totally buttoned down.”
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.”
Overall, TGT ranks 7th on our list of top stocks to watch ahead of May. 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
