I considered adding Home Depot (HD - commentary - Cramer's Take) to my list, but its share price is down about 18% over the past three months due to a large acquisition, and rising shareholder frustrations.
Lastly, shares of Target could also come under some pressure over the next year.
Target missed margin estimates in its first quarter reported on May 15. The company announced that one of its largest-margin and worst-performing segments for the quarter was home furnishings and decoration.
Target, unlike Wal-Mart (WMT - commentary - Cramer's Take), has no international exposure. This means it's 100% levered to the U.S., and a slowdown in the housing environment and the economy do not bode well for the company.
I would use the bounce provided by the recent upgrade from Lazard Capital as an opportunity to sell.
Investing The Dow: A Guru Case for Large-Caps 6/13/2006 4:03 PM EDT Nearly half of the benchmark index's stocks meet the high buying criteria of top investors.
Investing Activist Track: Coal Is the New Black 6/12/2006 2:05 PM EDT It's cool, goes with everything, and its related stocks have real assets behind them.
In keeping with TSC's editorial policy, Frank Curzio doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Frank X. Curzio is a research associate at TheStreet.com, where he works closely with Jim Cramer. Previously, he was the editor of The FXC Newsletter and senior research analyst for Greentree Financial. He appreciates your feedback; click here to send him an email.
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