Jim Cramer’s 10 Best Stocks to Buy After Fed Rate Cut

5. Target Corporation (NYSE:TGT)

Number of Hedge Fund Investors: 52

Jim Cramer believes Target Corporation (NYSE:TGT) is a compelling investment opportunity, particularly as interest rates decline. He highlights Target Corporation (NYSE:TGT)’s successful turnaround, which culminated in its recent positive same-store sales growth driven by increased customer traffic rather than higher prices.

“Finally, there’s Target. This makes a ton of sense to me, of course, as Target wins when the Fed starts easing. On top of that, it has a terrific turnaround story. The company just reported its first positive same-store sales growth since 2022, driven by higher traffic, not higher prices.”

Target Corporation (NYSE:TGT) continues to demonstrate strong financial performance, with Q2 2024 revenue reaching approximately $25 billion. This year-over-year increase, driven by robust sales across both in-store and online channels, underscores the company’s ability to meet evolving consumer needs. Target’s higher net income reflects effective inventory management and cost control, further solidifying its position as a leading retailer.

Target Corporation (NYSE:TGT) has made significant improvements in e-commerce, with online sales growing notably, thanks to investments in same-day delivery services like Shipt and Drive Up, enhancing its competitiveness against major retailers such as Amazon. Its diverse product range—covering groceries, home goods, and apparel—appeals to a wide customer base, while strong private label brands help improve profit margins and foster loyalty.

Additionally, Target Corporation (NYSE:TGT)’s innovative store formats, including smaller urban locations designed for specific customer needs, enhance accessibility and boost foot traffic. Target Corporation (NYSE:TGT) is also committed to sustainability initiatives, such as reducing plastic waste and responsible sourcing, which resonate with environmentally conscious shoppers and strengthen brand loyalty.

Carillon Eagle Growth & Income Fund stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:

“Target Corporation’s (NYSE:TGT) sales continue to feel the consumer softness in discretionary goods. In addition, while margins are recovering, they are not up to expectations. Encouragingly, sales are sequentially increasing and comparable sales are expected to get easier as Target enters the back half of the year.”