This Day On The Street
Continue to site
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

Lock On Target for Retail's Best Bargain

NEW YORK ( TheStreet) -- Retail giant Target (TGT - Get Report) has been in the news for all the wrong reasons. Sure, the entire retail sector has struggled with weak foot traffic as a result of winter storms. But on the heels of the company's data breach, which compromised information from millions of credit card holders, Target's also dealing with lack of consumer confidence.

With the shares down 15% since the hacking incident, some investors believe traders have overreacted. I can't blame them. From Wal-Mart (WMT) to TJX Companies (TJX) who hasn't been breached? And why should this situation be any different from the stolen passwords reported by Facebook (FB) and Microsoft (MSFT)?

[Read: Apple Shouldn't Buy Tesla, but (Blank) Should!]

First, let's acknowledge that Target's management never shied away from the scrutiny. The company quickly apologized for the violation and assured customers that they would not be liable for any fraudulent costs incurred from the breach.

The company never downplayed the magnitude of the breach. Nor did they lowball the number of customers believed to have been impacted (an estimated 70 million people). At this point, investors don't know what to make of the stock. While shares have been relatively resilient, it remains to be seen how shoppers will respond in the coming the quarters.

I think that unless you believe this event will have significant long-term effects, these shares present a buying opportunity. This scandal does not change the long-term story. Nor has management altered its strategic plans for 2017.

The company expects earnings of $8 per share over the next three years. It also projects roughly $6 billion in annual revenue from their Canadian operations (where sales have underperformed). So despite this recent scandal, it's encouraging that management chose to not run from its promises, even if the Street would have understood if they did.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TGT $73.44 0.00%
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs