This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Tempted to Buy Target

Stocks in this article: TGT WMT BBY

NEW YORK ( TheStreet) -- The other day I asked a savvy friend what stocks he's interested in owning. Without hesitation he said, "I have a short list, and Target (TGT) is at the top of that list."

He already owns many of the best-in-breed companies, and he's married to a financial analyst, so he's not someone who just fell off the turnip truck on the way to the market. "Target knows how to compete in a cost-effective way," he enthusiastically reminded me.

"They're carefully expanding into areas of the country like Santa Barbara, Calif., where there's plenty of demand and their kind of demographic base," he added. "They know what they're doing and how to execute on their business model".

That's when I decided to look carefully at Target's key financial statistics and plans to reward shareholders.

First, I had no idea how long TGT has been around. Target was founded in 1902 and is headquartered in Minneapolis.

It offers full-time employment to over 365,000 people. As of Wednesday, the company operated 1,781 stores in the United States. It also has an online presence through its Web site, The company distributes its merchandise through a network of distribution centers, as well as third parties and direct shipping from vendors.

Additionally, it offers credit to guests through its branded proprietary credit cards, the Target Visa Credit Card and the Target Credit Card, as well as through its branded proprietary Target Debit Card. You should take a look at its easy to navigate Web site and begin at the investor relations page.

There you'll find monthly sales summaries, dividend and stock split history, and important news, like the fact that Target is opening its first Canadian stores in 2013. The CEO message box is a must-read. CEO Gregg Steinhafel shares Target's philosophy on the connection between strong communities and a healthy business.

"When Target opened in 1962, we believed we could build a sustainable business that strengthened communities for the long term by continually anticipating the consumer needs of the moment. And today, 50 years later, our commitment to that ideal is as strong as it was on opening day", the CEO message reports.

"Central to our management philosophy was the belief that our business could benefit communities, and that strong, healthy communities would be essential to lasting business success."

The importance of this approach is paying off in the profitability of both the company and the stock price.

Target's trailing-twelve-month (TTM) operating cash flow is a healthy $5.57 billion on annual revenue (TTM) of $71.34 billion. The 2.3% dividend is sustainable as it comes from a relatively low payout ratio of 28% of the company's earnings.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,803.16 +25.01 0.14%
S&P 500 2,067.75 +6.52 0.32%
NASDAQ 4,757.5990 +9.2030 0.19%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs