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August 10, 2006
Target right on the mark, Thurs., Aug. 10, 2006, 12:58 PM
Speaking of overcoming the challenges of retailing in the U.S., here is another retailer that was right on the mark. That company is Target (NYSE: TGT). Download UBS Aug 10 TGT report.
Solid growth in revenues; solid growth in margins and earnings. Just like JC Penny earlier today, what's not to like?
Well for one thing; the margins at Target are not as high as at JC Penny. Target has more competition obviously in Wal-Mart. UBS researchers rate TGT as a Buy 1, but, while I like the growth in recent years, I still can't replace Wal-Mart with Target in the Cara 100.
As Cramer says, maybe I like those dowdy Soviet-era type Wal-Mart stores. But the truth is I have never in the three years since I first ventured into a Wal-Mart store " out in the country where my parents lived (and there was no competition) " I have never had a bad shopping experience at Wal-Mart. To the contrary.
But, I must admit to never having visited a Target store. Don't ask me about Home Depot!
As to trading Target, you'll have to do the research. I could be wrong, but I'm guessing Cramer would advise buying it.
Target [GICS 25]
(TGT: Yahoo Finance file)
(TGT: StockChart chart)
(TGT: Investertech chart)
(TGT: ADVFN Financial Data)(TGT: ADVFN Financial Data)
Posted by Posted by Bill Cara on August 10, 2006 12:58:23 PM | Category: 25 Cons Discretionary
Discourse
for what it's worth, my wife is the single greatest shopper i have ever met. she can leave the house with a few hundred bucks and return 6 hours later with a tractor trailer's worth of merchandise. and brings back change.
target is her favorite store. she says they beat the others on quality and price.
position: i avoid malls and stores like the plague.
Posted by: mtzion ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
August 10, 2006 1:19 PM [link]
Staying with the consumer discretionary theme, anyone looking at Black and Decker (BDK $67.54) here?
Daily/Weekly/Monthly 7 period RSI: 28/13/26
Dividend yield of 2.2%
I expect it's been beaten up largely in sympathy with the homebuilders, which I don't like at all here. But man, BDK sure looks ripe for a bounce.
Posted by: doug11 at
August 10, 2006 1:45 PM [link]
mtzion
I like your position, too funny, and im wondering how many others feel like you, have a great day and thanks for the little laugh.
Posted by: tgifbipo at
August 10, 2006 2:07 PM [link]
Target DOES have more style, and less breadth than Walmart. Clothes are cheap and often quite stylish. There are kitchen gadgets designed by Michael Graves.
Walmart is great on price, and has most everything you'd ever want to buy, but flair it ain't got.
Might BOTH retailers not merit inclusion (at least in the Cara 250)?
My characterization of shopping at WMT...I'd rather have needles stuck in my eyes.
Posted by: Leisa at
August 10, 2006 9:20 PM [link]
OK so based on reader response TGT is much nicer than WMT. I have to admit that I like the TGT long term chart much better then WMT. I own both currently.
Posted by: stockman at
August 10, 2006 10:17 PM [link]
My perception is that TGT is to WMT what COST is to Sam's Club.
Good prices with a little higher quality products and over-all experience.
Posted by: stockman![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
August 10, 2006 1:17 PM [link]