Target Corp (TGT): Today's Featured Retail Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Target ( TGT) pushed the Retail industry lower today making it today's featured Retail laggard. The industry as a whole closed the day down 1%. By the end of trading, Target fell 69 cents (-1.1%) to $62.99 on light volume. Throughout the day, 2.9 million shares of Target exchanged hands as compared to its average daily volume of 5.1 million shares. The stock ranged in price between $62.70-$63.60 after having opened the day at $63.60 as compared to the previous trading day's close of $63.68. Other companies within the Retail industry that declined today were: Guess ( GES), down 22.6%, Big Lots ( BIG), down 20.8%, Fred's ( FRED), down 10.2%, and ALCO Stores ( ALCS), down 5.9%.

Target Corporation operates general merchandise stores in the United States. Target has a market cap of $41.62 billion and is part of the services sector. The company has a P/E ratio of 14.4, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 25.2% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Target a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Target as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).
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