Which is why co-managers Cramer and Jack Mohr love, love, love it.
Cramer said he spoke with Cornell and the CEO is very aware of Target's strengths and weaknesses. Target was not doing well in Canada and Cornell cut the losses and ended those Canadian operations. So when Target had issues with its pharmaceuticals division, the company brought in CVS.
Cramer said while some people believe bringing CVS into target stores will mean that Cornell will lose control, "if anything, he's going to get more store traffic." Cramer called CVS a very good operator and the deal will solve Target's issue of not having a profitable pharmacy business.
Mohr said now Target has $1.2 billion in after-tax proceeds to put towards stock buybacks. Cornell has been able to understand where Target needs to improve and has been making the right decisions to get things done. Besides bringing in CVS, Target is improving its baby food division, and in apparel Target's numbers have been going strong.
Cramer said Target has put the hacking scandal behind it and Target now reminds him "of the Target where you used to see the kind of growth that really made you excited about retail."
Cramer said there's also the new, smaller Target Expresses that are being released near universities as part of the retailer's plan to keep consumers for life, through important times like having a newborn child or going to college. Cramer said Wal-Mart (WMT) - Get Report should be worried. Mohr added that while most retailers are boring, Target it is creative and finds new ways to extract value.
TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TARGET CORP (TGT) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: TGT Ratings Report
At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held a positions in TGT.