Target Corporation (TGT) Declined on Weakness in Discretionary Sector Despite Good Results

Madison Investments, an investment advisor, released its “Madison Sustainable Equity Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The market delivered a strong performance again in the second quarter with the S&P 500 up 8.7%. Technology stocks contributed more than half of the S&P 500’s return. However, Madison Sustainable Equity Fund lagged behind the S&P 500 in the second quarter. Both sector allocation and stock selection were headwinds. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Sustainable Equity Fund highlighted stocks like Target Corporation (NYSE:TGT) in the second quarter 2023 investor letter. Headquartered in Minneapolis, Minnesota, Target Corporation (NYSE:TGT) is a general merchandise retailer. On July 17, 2023, Target Corporation (NYSE:TGT) stock closed at $130.01 per share. One-month return of Target Corporation (NYSE:TGT) was -2.04%, and its shares lost 15.23% of their value over the last 52 weeks. Target Corporation (NYSE:TGT) has a market capitalization of $60.007 billion.

Madison Sustainable Equity Fund made the following comment about Target Corporation (NYSE:TGT) in its second quarter 2023 investor letter:

“Target Corporation (NYSE:TGT) stock weakened following its first quarter earnings report. While results were better than expected, with same store sales in line with expectations and a stronger gross margin resulting in a 16% earnings beat, Target highlighted softness across discretionary categories. The discretionary weakness resulted in second quarter same store sales guidance in a wide range of low single digit negative to a low single digit gain. Target’s inventory position continues to improve, and they have cost savings initiatives in place to drive margin improvement over the next few years. We continue to view Target as well positioned for long-term growth with its strong owned brand strategy and omnichannel offerings.”

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Target Corporation (NYSE:TGT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of first quarter which was 48 in the previous quarter.

We discussed Target Corporation (NYSE:TGT) in another article and shared Gen Z’s 25 favorite brands in 2023. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.