NYSE:TGT
$49.33
(2/9 2:13PM)
+1.1%
| Open | $49.15 |
Mkt Cap | $36.7 Billion |
| High | $49.7 |
52Wk High | $52.46 |
| Low | $48.78 |
52Wk Low | $25.00 |
| Volume | 3.0 Million |
Avg Vol 10D | 9.8 Million |
Ockham's Rating/Recommendation Summary
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TGT Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, TGT the high and low end of the Price to Sales per share ratios are 0.89x and 0.55x respectively.
Notice that TGT's current Price to Sales per share ratio is 0.57x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $49.30, TGT is 21% below where we would expect to see it. This will beneficially factor into our final analysis of TGT as it is not often that this stock sinks to these levels.
TGT Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. TGT is below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for TGT, the current level of Cash Earnings compared to its historical levels helps identify where TGT is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 12.83 and a historical low Cash Earnings per share ratio of 7.76, an investor can relate where value becomes optimal.
With a historical average Cash Earnings ratio of 10.29, the current Cash Earnings ratio of 9.00 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for TGT, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at TGT needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where TGT is trading currently (latest close price of $49.30).
TGT Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from TGT against the historic high and low levels over an available data range. Because TGT has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In TGT’s case, the estimated annual dividend is $0.68 producing a current dividend yield of 1.38%. The highest dividend yield from TGT in recent history was 2.72% while the lowest dividend yield was 0.50%. Given this range, the current dividend yield for TGT is below its historical median and not terribly attractive from this perspective.
Stay Current on TGT's News on Tech Trader Daily-Barron's
The latest news on Tech Trader Daily-Barron's in regards to TGT came through on RazorWire recently.
The Ockham valuation currently has a Fairly Valued stance on TGT because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards TGT and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Target Corporation has actually sunk a bit in comparison to the others.
“… As Business Week reports, first Target (TGT) and now Wal-Mart (WMT) have imposed strict limits on the number of DVDs any one customer can buy at one time. …”
Target Corporation Was Talked About by Squawk Box
Target Corporation is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk Box.
We have recently (Saturday, January 09, 2010) downgraded this stock due to deteriorating fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards TGT and think that it will generally perform in-line with the S&P 500. The Ockham valuation currently has a Fairly Valued stance on TGT because it trades within the price range that we would expect given current market conditions and fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Target Corporation has actually sunk a bit in comparison to the others.
“… On TGT. > > on TGT, right. > > suspended back in november of 2008 when things were not looking so hot. That is back on track. …”
Check Out Squawk Box and News on TGT
News has broken via the television and viral blogs regarding TGT, so investors should take an interest in learning what was said.
At present, Ockham has a valuation stance of Undervalued on TGT, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards TGT and think that it will generally perform in-line with the S&P 500. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Target Corporation has actually sunk a bit in comparison to the others.
“… Target, TGT, a great mass merchant to play going into we think the trade will come back from walmart to target as the discretionary recovery continues to evolve. …”
Check Out Power Lunch and News on TGT
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on TGT from Power Lunch.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Target Corporation will perform just about the same as the index. We consider TGT as Undervalued at the current price of $47.56. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Target Corporation has been talked about more than normal recently. The improving valuation of Target Corporation has prompted us to upgrade this stock as of Saturday, November 14, 2009.
“… I'm long target, TGT. I think all of those move up. But I do think that amazon and walmart are going to keep putting pressure on the rest of the people, in particular the other... …”
TGT Having an Active Day in News, Now on Fox Business
Up in the store. If it's only online, it would be more beneficial if you pick them >> yes. In the case of wal-mart and target, you won't be able to go to the store -- >> brian: you know those sections in the store are in the back. You have to walk through everything to pick up your what you're describing there that wal-mart, this is not all together new. It's like when you see the flier in their newspaper. They smack a $10 sign on the dvd.
“… h everything to pick up your what you're describing there that wal-mart, this is not all together new. It's like when you see the flier in their newspaper. They smack a $10 sign on the dvd. …”
Stocks to Watch: TGT Heavily Covered on Fox Business
These are the new moves not out yet. It's for preorder only but what's happening is wal-mart's big rival, amazon, target, they're matching the prices that wal-mart's putting out there. In fact, they're beating it. Wal-mart to compete with amazon putting out $9.99 dvd's. Wal-mart today lowered their to $9.98. There's a price war going on. They're not making money.
“… ut $9.99 dvd's. Wal-mart today lowered their to $9.98. There's a price war going on. They're not making money. …”
Fox Business: TGT is Among Most Active Stocks in the News Today
Wal-mart extending its price war to dvd's. First books, then toys, flat screen tv's, now dvd's. Target and amazon are responding but what about small business. Sandra smith. >> very emotional earlier. >> brian: well, you know. Tough coming from a small town, see people lose their job. It's not easy. Just the facts, ma'am. >> it's not easy. Essentially there's a price war
“… own, see people lose their job. It's not easy. Just the facts, ma'am. >> it's not easy. Essentially there's a price war …”
TGT Having an Active Day in News, Now on Fox Business
>> brian: not talking about movies, i'm talking in general. >> the prices paid for movies, the movie studios will not change. Wal-mart, amazon, target, paying the same wholesale price. Not unusual to see wal-mart say 9.98 come into the store and hopefully pick up other things. >> brian: so they're losing money. >> brian: to get people in. >> brian: god forbid mom and pop owns a local movie shop. >> that's what happens unless you're a smaller store that offers good customer service,
“… y pick up other things. >> brian: so they're losing money. >> brian: to get people in. >> brian: god forbid mom and pop owns a local movie shop. >> that's what happens unless you're a smaller store that offers good customer service, …”
Stay Current on TGT's News on Squawk On The Street
Always said that's not enough. What he wants is to actually see us adding jobs, putting people back to work. And he has had us for several months thinking about what else could be done to really TARGET job creation and to make sure that we get this unemployment rate down as fast as possible. And you know, we're doing one thing today, which is signing the bill to extend unemployment benefits. We see how important that is, given the high unemployment but there are other things, right?
“… oyment rate down as fast as possible. And you know, we're doing one thing today, which is signing the bill to extend unemployment benefits. We see how important that is, given the high unemployment but there are other things, right? …”
The Opening Bell on Fox Business: TGT is Among Most Active Stocks in the News Today
Twice yesterday for ten upcoming dvd releases. Cutting the prices down to $10 yesterday and then the rivals come out and amazon.Com and TARGET, and they match wal-mart's offer, but wal-mart says uh-uh we're not going to be done and cut dvd prices a second time down to 9.99 by another penny and playing, hard to get or trying to undercut again. It was, it could be a preview of things to come for the holiday season, one of the reasons we're talking so much about it. That's what a wal-mart.Com
“… time down to 9.99 by another penny and playing, hard to get or trying to undercut again. It was, it could be a preview of things to come for the holiday season, one of the reasons we're talking so much about it. That's what a wal-mart.Com …”