NEW YORK (TheStreet) -- Target Corp. (TGT) - Get Report shares are down 1.36% to $72.44 on Monday as the retailer's website is down. The company said that high traffic on Cyber Monday is causing delays.
The company added, "If you wouldn't mind holding, we'll refresh automatically & get things going ASAP."
Cyber Monday, immediately following Thanksgiving, is one of the biggest online shopping holidays of the year.
Regarding promotions and deals, Target is offering a 15% site-wide discount along with 75 "e-doorbuster" sale items.
U.S. holiday shopping is on track for a 3.7% rise this year, according to the National Retail Federation.
Separately, TheStreet Ratings team rates TARGET CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate TARGET CORP (TGT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Multiline Retail industry average. The net income increased by 56.4% when compared to the same quarter one year prior, rising from $351.00 million to $549.00 million.
- TGT's revenue growth trails the industry average of 12.6%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Multiline Retail industry and the overall market, TARGET CORP's return on equity exceeds that of both the industry average and the S&P 500.
- After a year of stock price fluctuations, the net result is that TGT's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full analysis from the report here: TGT