Target Stock Lags Peers; Job Cuts Aim to Reverse Stagnant Sales
Target Corporation (TGT) has seen its stock underperform major competitors in the last decade, despite acknowledging recent shortcomings and planning changes. The Minneapolis-based retailer has also announced significant job cuts as it aims to reverse stagnant sales.
In the past ten years, Target's stock has returned 73% to shareholders, lagging behind Walmart's (WMT) 564% and Costco's (COST) 620% returns. Currently, TGT stock trades at a forward price-to-earnings multiple of 12.1x, below its 10-year average of 15.8x. The stock has also dropped 65% from its all-time highs, trailing its peers.
Target faces challenges in inventory management, store traffic, and stagnant sales, but it has shown recent improvement in physical store performance. The retailer's job cuts and incoming CEO's plans suggest a commitment to turning around its fortunes. Despite the hurdles, analysts predict steady growth in Target's sales and earnings over the next five years.
