Is Target the Way to Go?

What Do We Know About Target Going into the End of the Year
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With stiff competition in Kohl’s, Macy’s, Walmart and Best Buy Physical locations as well as Walmart and Amazon online, Target seems to be pushing itself forward in entirely new ways, and it just might be able to come out on top. It’s unclear what exactly is driving all of the benefits, but the company seems to be outperforming the market and expectations.

Over the last several years Target had already started working on their delivery service, but they’re actually using delivery from their individual stores. This has helped them to compete with online giant Amazon in a space that used to be theirs alone.

With the pandemic, they’ve been able to utilize Shipt for all of their deliveries as before, but it’s become even more important as more and more people start buying for delivery rather than visiting the multitude of physical Target stores throughout the country. They also started using in-store pick-up as well as the Target Drive Up program to offer contact-less pickup.

It seems Target stock just might be increasing further than any expected. In fact, they’ve been able to take the lead in digital sales among other retailers and they have a long-term investment in the strategy. Their last quarter actually made headlines and they’ve managed to continue their extremely strong online activity. In fact, they watched same-day services increase by 217% while digital sales grew 155% and overall revenue grew 21.3% for the year. In just this third quarter their sales grew 20.7%.

All of this seems to point to overwhelmingly positive things for the company, with the CEO making a statement that, The result is unprecedented market share gains and historically strong sales growth, both in our stores and digital channels,”

While other retailers are starting to close their doors, Target is actually continuing to see growth and improvement and that doesn’t seem to be likely to change anytime soon. Year-over-year they’ve continued to see revenue growth throughout this quarter, where Walmart is continuing to see improvement, but at half to a quarter of the rate that Target has.

Earnings per share are reporting at $2.79, which is 105% higher than they managed to achieve in the last year and exceeding expectations by a long shot. This is what’s really helping the company to improve and just might be a good reason to buy in. But the stiff competition might be a reason to put up a little caution before diving in too far.


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