HHow much a stock’s price changes over time is important to most investors, as price performance can both impact your investment portfolio and help you compare investment results between sectors and industries.
Another thing that can motivate investing is the fear of missing out, or FOMO. This especially applies to tech giants and popular consumer actions.
What if you had invested in Target (TGT) ten years ago? It might not have been easy to keep TGT all this time, but if it was, how much would your investment be worth today?
Deepening of Target’s activity
With that in mind, let’s take a look at Target’s main business drivers.
Target Corporation (TGT) has grown from a simple brick and mortar retailer to an omnichannel entity. The company has invested in technology, improved websites and mobile applications, and modernized the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players. Noteworthy is its acquisition of Shipt to provide same-day delivery of groceries, basic necessities, home, electronics and other products.
Founded in 1902, Target offers a line of products from household and electronics to toys and clothing for men, women and children. It is also home to food and pet supplies, home furnishings and decor, home improvement, automotive products, and seasonal merchandise.
This Minneapolis, Minnesota-based company also offers in-store amenities, including Target Café, Target Photo, Target Optical, Portrait Studio, Starbucks, and other food service offerings. Target operates more than 1,900 stores.
More general merchandise stores carry a modified food assortment, including perishables, dry groceries, dairy products and frozen items. The company’s stores, which are more than 170,000 square feet, offer a full line of food products comparable to traditional supermarkets.
The company’s small stores, which measure less than 50,000 square feet, carry general merchandise and select food assortments. The company’s digital channels include a wide assortment of merchandise, including many items found in stores, as well as a complementary assortment.
Some of the brands owned by the company include: A New Day, Cat & Jack, Cloud Island, Made By Design, Opalhouse, Prologue, Project 62, Ava & Viv, Smith & Hawken, Wild Fable and Wine Cube.
Some of the company’s exclusive brands include: C9 by Champion, Hand Made Modern, Kid Made Modern, DENIZEN by Levi’s, Fieldcrest, Genuine Kids by OshKosh, Isabel Maternity by Ingrid & Isabel and Umbro.
Anyone can invest, but building a successful investment portfolio requires a combination of several elements: research, patience, and a little bit of risk. So if you had invested in Target ten years ago, you are probably feeling pretty good about your investment today.
According to our calculations, an investment of $ 1,000 made in August 2011 would be worth $ 5,373.07, or a gain of 437.31%, as of August 6, 2021, and this return excludes dividends but includes price increases.
The S&P 500 rose 269.28% and the price of gold rose 4.40% over the same period in comparison.
Going forward, analysts expect more potential for TGT.
Although shares of Target have risen in the past three months, the stock could come under pressure in the short term. The likely decline in demand for basic necessities due to lower home consumption and lower pantry loading trends could weigh on future periods. The company may face difficult year-to-year sales comparisons as the benefits of COVID-19 are outdated. In fact, in the first quarter of fiscal 2021, Target experienced slower growth in the Essentials and Food & Beverage categories. Nonetheless, the company has benefited from efforts to strengthen omnichannel capabilities and product assortments. These aspects contributed to its first quarter results, in which both top and bottom results increased year over year. The company has strengthened its business model to adapt and remain relevant in the ever-changing retail landscape.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.