Stock Snapshot | Target Brands, Inc.

Chances are you've stepped into a Target store in the last year, or month, or twice in the past few hours - whichever your dependency level! Let's take a look at the stock side of Target as we're all likely pumping the price in one way or another!

Target, the recently renovated retail superstore and e-commerce giant has lofted itself into being competitors with the likes of Amazon.com and Walmart. That's a small but powerhouse list.

And with more stores opening across the country, the brand continues to expand its footprint and command the attention of the masses in need of anything from diapers to Magnolia Home.

Data Snapshot

Current Price: $199 [as of 3/30/21]

• High Target Price: $260

• 52 Week Low: $90.17

• 52 Week High: $201.96

Buy Ratings: 19

Hold Ratings: 6

Sell Ratings: 1

5-Year Return: 144%

1-Year Return: 109%

What the Bulls are Saying | The Optimists

For Target investors, there's a lot to like these days. A 144% return over the past five years and a 109% return since most of the country shutdown shows great promise moving forward.

Had you invested $3,000 into the stock last March, you'd have slightly more than $6,000 today.

The company saw a record $15 billion in sales last year, which was more than its past 11 years combined. As a parent, I know we can take care of our select grocery items, book buying, diapers, games, Legos and clothing all in one location.

Need a Starbucks fix, a new pair of glasses or a prescription?

Target has you covered.

As families navigate the ups and downs of the pandemic, it is likely that Target could also see an influx from the latest round of stimulus checks. Online orders continue to move well, which could stabilize the company moving forward.

Although, recently, Amazon overtook big box stores like Wal-Mart and Target in clothing sales; Target may show us that the in-person shopping demand, with a balance online fulfillment and order pickup can really deliver on the needs of its customers.

Another point, recently made in a Motley Fool article, recognizes the relatively small footprint of a Target store. All this means is that the brand can better access smaller or harder to reach locations in comparison to the size demands of a Wal-Mart.

Their two-day shipping is real and if they don't deliver their customer-oriented service is at the level of Amazon, depending on your situation.

The bull case is one that recognizes Target's momentum and its high-margin, in-house product "Good & Gather."

Target's Good & Gather Brand

Target is going to be re-investing a lot of its earnings, which will help it grow the business. But investors don't always love this at first, which means the price may not see large growth right away.

A long bull investor might enjoy the rewards of the burgeoning brand, overall, if patience is on the docket.

What the Bears are Saying | The Pessimists

For Target it will all depend on margins, otherwise defined as the cost of sale minus the cost of production.

Where there is a healthy discussion on margins regarding their Good & Gather brand in the bull case, the bear case recognizes margins are tight regarding free shipping for members and discounted shipping for non-members.

Target is willing to lose money in order to provide convenience to its customers.

The undercurrent here that could either carry this stock aloft or erode it away from underneath will be the shipping rates and overall momentum of customer pick-up, since customers picking up items will also be cheaper since there are no shipping costs.

Conclusion

Momentum for Target is strong and their last round of reinvestment into the business and footprint of services resulted in a tripling of the stock price.

Their ability to market and draw in the cliche' shoppers could result in a fantastic setup, especially while integrating the wave of home improvement spending with brands such as Magnolia and McGee & Co., while staying trendy for younger shoppers.

Ever walk into a store and say, "They got us again with that Frozen setup."

Those themed displays, man.

The goal is to increase customer spending on a behavioral level. Walk in for a gallon of milk and leave with a $100 tab.

Mission accomplished, Target.

And the people still love it!

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Disclaimer: The Wealth Map does not provide specific investment/fund advice and does not guarantee personal investment returns. Talk with an unbiased, fee-only financial advisor for specific retirement or investment goals.