Walgreen Company (WAG), eBay Inc (EBAY), Target Corporation (TGT): Is This Giant a Good Long-Term Bet?

As American retailers face tough competition in the domestic market, giants like Wal-Mart Stores, Inc. (NYSE:WMT), Costco Wholesale Corporation (NASDAQ:COST), and Target Corporation (NYSE:TGT) are expanding globally. But unlike Wal-Mart and Costco, Target has not expanded itself outside North American. During the past couple of years, Wal-Mart and Costco have minted substantial margins from the Asia-pacific market. In order to stay close to these rivals, Target should also focus on Asia and Latin America.

Target Corporation (NYSE:TGT) is trading at a forward price-to-earnings ratio of 13.14 and yields a dividend of 2.40%. According to the sell side, it has a one year target price of $73, reflecting an upside potential of a meager 2%.

Conclusion

As eBay Inc (NASDAQ:EBAY) remains wary of Europe’s sluggish economy, it has forecasted modest growth in the second half of 2013. However, eBay’s remarkable growth during the last few years has been a source of inspiration for all retailers. Even in an economic downturn, the online retailer has shown a lot of resilience. Given the fact that the company is making large investments in all its three segments, its long-term future looks bright, making it a top buy in the retail industry. Moreover, after projecting a conservative second half of 2013, eBay’s share price has fallen slightly, presenting a great opportunity to cash in on long-term gains at a good price.

Waqar Saif has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and eBay. The Motley Fool owns shares of Amazon.com and eBay.

The article Is This Giant a Good Long-Term Bet? originally appeared on Fool.com.

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