Target Stock Buy

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Target Stock Buy

Target Stock: Should You Buy Or Not?

Target (TGT) has gained 70% upside on a YTD basis. However, it is still trading below its high from 5 years ago. However, Target stock has managed to stage a sharp recovery, and we must give credit where it's due.

After the recovery, the 5-year performance of Target is now around -33.46%. The market cap of Target is sitting at $75.38 billion.

Target Has Multi-Year Plans

The new CEO, Michael Fiddelke, already has a multi-year strategy to turn things around. He wants to improve the guest experience, strengthen the teams, and accelerate the use of technology. The new CEO also wants to lead with merchandise authority.

Fiddelke has made it clear that the turnaround of Target can take some time. But if Target manages to stage its turnaround, it would mean massive upside in the stock price.

Target is expected to spend $5 billion in capital during 2026. That's higher than the CAPEX from last year. The company is planning to spend that money on the remodeling of 130 stores. There are also plans to open 30 new stores. According to the management, this will be one of the biggest transformations of Target stores in the past decade.

The company is also spending big money on store training and payroll. This would help the company minimize the complaints that drove shoppers away.

Target announced that it will spend an extra $2 billion on addressing the merchandising issue. It was the key issue that pushed customers away. In addition, Target has cut prices on 10,000+ items to win back the value-conscious customers.

Another interesting thing happening is the Target Plus marketplace. It is an invitation-only marketplace that already has 1500+ brands and more than $1 billion in gross merchandise value. The goal is to reach $5 billion in the next few years.

Considering all of these things, it is clear that Target is heading in the right direction. Buying Target stock can be a great decision for long-term investors. But if you don't want to invest for a few years, then you should look at other stocks.

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