Target’s Valuation Is Attractive, but Margins Are a Deterrent
Target (TGT) stock has risen 17.2% on a YTD (year-to-date) basis as of July 12 thanks to the company’s growth initiatives that are gaining traction. Despite the healthy increase on a YTD basis, Target’s current valuation multiple is lower than its historical average. As of July 12, Target’s stock was trading at a forward PE (price-to-earnings) multiple of 14.3x, which is about 5% lower than its four-year historical average multiple of 15.0x.