Top 8 Discount Stores Stocks For 2025

2. Target Corporation (NYSE:TGT)

Target Corporation is a general merchandise retailer that provides jewelry, apparel, shoes, beauty & personal care, pet supplies, and other products. The company supplies its products through digital channels and its stores. The stock is down nearly 4% in the last five trading days.

Target shareholders were caught by surprise in the third quarter when the company missed analyst estimates, a rare occurrence for the retail giant. The stock crashed over 22% as a result. The main reason for the poor performance was lower consumer spending which was further exacerbated by weakening gross margins. The stock has been slowly recovering since then, anticipating the holiday season results which usually come in good for the company.

The firm is expected to receive a significant boost when it announces the Q4 result in early March. Already released numbers show the company exceeded sales expectations, with record sales on Cyber Monday and Black Friday. The earnings will confirm if the people were indeed spending money, unlike Q3. Chances are they were and that’s why the stock is inching up slowly.

Target is a strong company and due to its recent struggles is trading at just over 14 times forward earnings while the median forward PE for the sector is 18.39. There is value to be had here as people try to get in to play the December quarter earnings.