Target is a
leading discount retailer concentrated in California ,
Texas , Florida
and the upper Midwest .
It has grown profits and dividends at an 11-15% pace over the last 10
years earning a 15%+ return on equity.
The company faltered a bit in its 2008 fiscal year due to the slowing
economy but has since recovered and should continue growing at an above average
rate as a result of:
(1) improving
comparable store sales and operating margins due to its product innovation,
aggressive pricing strategy and its efficient, multi channel marketing strategy,
(2) rising store
productivity arising from expanded grocery offering, better store layout and an
enhanced in-store shopping experience,
(3) introduction
of smaller stores in urban markets,
(4) expansion
internationally.
(5) active stock
buyback program.
Negatives:
(1) it is a highly competitive industry,
(2) a volatile credit market could jeopardize
growth plans,
(3) lack of current geographic diversification,
(4) its customers are sensitive to
macroeconomic factors.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin
Rating
Chart
Note:
TGT stock made great progress off its March
2009 low, quickly surpassing the downtrend off its September 2008 high (red
line) and the November 2008 trading high (green line). Long term, the stock is in an uptrend
(straight blue line is the lower boundary).
Intermediate term, it is an uptrend (purple lines). The wiggly blue line is on balance
volume. The Dividend Growth Portfolio
owns a full position in TGT . The stock is on the Dividend Growth Buy
List. The lower boundary of its Sell
Half Range
No comments:
Post a Comment