How Target’s Valuation Looks Now
On March 20, Target was trading at a 12-month forward PE ratio of 13.6x—lower than the S&P 500 Index’s (SPX) PE ratio of 18.8x.
Of the 28 analysts covering Target (TGT) stock, 22.0% have rated the stock as a “buy” as of March 20. Target stock has been rated as a “hold” by 64%.
Target (TGT) has a strong track record of rewarding investors with higher dividends and share repurchases.
Target is planning to invest $2 billion in the current fiscal year and about $7 billion over the next three years.
Target reported sluggish fiscal 4Q16 results on February 28, missing Wall Street’s expectations. Its total sales of $20.7 billion represent a 4.3% YoY fall.
Fiscal 2016 was a tough year for Target (TGT), and 2017 isn’t looking much better.
If we look at the recent performance of the company, Walmart’s US (SPY) segment has benefited from the company’s e-commerce initiatives.
Wal-Mart Stores (WMT) appears to be on an acquisition spree, buying small online retailers to solidify its position in the fast-growing online space.
As of March 15, Walmart (WMT) was trading at a 12-month forward PE ratio of 16.3x, which is lower than the peer group average.
Of the 35 analysts covering Walmart (WMT) stock, 32.0% have rated the stock a “buy” as of March 15. The stock has been rated “hold” by 57% of analysts.
Walmart (WMT) has a solid track record of rewarding investors with higher dividends and share buybacks.
Walmart’s (WMT) Sam’s Club is in the middle of a revamping process aimed at driving sales and profitability for the segment.
Walmart’s (WMT) International segment has remained in the red as the segment reported yet another quarter wherein the top line marked a decline.
Walmart’s (WMT) US segment is witnessing healthy trends—a big positive for the company, as the segment accounts for the majority of its revenue and margins.
Walmart (WMT) has invested immensely in fortifying its position in the online space against its bigger rival, Amazon.com (AMZN).
Walmart (WMT) came up with better-than-expected fiscal 4Q17 earnings, beating expectations for the sixth consecutive quarter.
Walmart (WMT) is likely to benefit from the strategic investments it has made over the past couple of years to overhaul its operations.
Dollar General’s (DG) EPS rose 12% year-over-year to $4.43 for fiscal 2016.
Dollar General (DG) stock is down 1.7% year-to-date and is currently trading at $72.81, which is ~33% below its 52-week high price.
In fiscal 4Q16, Dollar General’s (DG) top line increased 13.7% year-over-year to $6 billion.