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 1.4%. By the end of trading, Target fell 77 cents (-1.2%) to $64.38 on light volume. Throughout the day, 3.1 million shares of Target exchanged hands as compared to its average daily volume of 4.4 million shares. The stock ranged in price between $64.36-$65.60 after having opened the day at $65.55 as compared to the previous trading day's close of $65.15. Other companies within the Retail industry that declined today were: RadioShack ( RSH), down 16.3%, HHGregg Incorporated ( HGG), down 9.2%, Body Central ( BODY), down 5.9%, and GameStop ( GME), down 5.7%.
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Target Corporation operates general merchandise stores in the United States. Target has a market cap of $42.86 billion and is part of the services sector. The company has a P/E ratio of 15, equal to the average retail industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Target a buy, one analyst rates 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.

On the positive front, dELiA*s ( DLIA), up 5.2%, Christopher & Banks Corporation ( CBK), up 4.7%, and Acorn International ( ATV), up 2.2%, were all gainers within the retail industry with Safeway ( SWY) being today's featured retail industry leader.

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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