5 Best Delivery Stocks to Invest In

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 46  

Target Corporation (NYSE:TGT) operates as a general merchandise retailer in the United States. It is one of the top delivery stocks to invest in. The company has an impressive dividend profile. It has consistently paid a dividend to shareholders for the past fifty-four years. On September 22, the firm declared a quarterly dividend of $1.08 per share, in line with previous. The forward yield was 2.72%. 

On August 1, JPMorgan analyst Christopher Horvers maintained an Overweight rating on Target Corporation (NYSE:TGT) stock and raised the price target to $190 from $180, noting that the reactions to downward revisions in the retail sector were turning more positive. 

At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Target Corporation (NYSE:TGT), compared to 50 in the preceding quarter worth $2.95 billion. 

In its Q2 2022 investor letter, LRT Capital management, an asset management firm, highlighted a few stocks and Target Corporation (NYSE:TGT) was one of them. Here is what the fund said:

“The Target Corporation (NYSE:TGT) operates retail stores that sell a variety of merchandise ranging from necessities such as food and hygiene products to discretionary products like children’s toys and electronics. The sale of this merchandise is done primarily through physical retail locations in all 50 US states. However, Target also sells its merchandise digitally through its online website which delivers merchandise to its customers in three ways: order pickup, drive up, and “Shipt”. The Target Corporation operates a single segment through 1,926 physical stores.

Target is one of the largest US brick-and-mortar retailers and has successfully adapted to the competitive environment in the age of Amazon. As of 7/15/2022, TGT shares are down 36% for the year and down 44% since their all-time-high last year. The business is experiencing issues that are temporary in nature and we believe that the shares present an attractive opportunity at current prices. Target performed exceptionally well during the Covid-19 pandemic and its aftermath. Unfortunately, the company was recently caught flat footed, as consumer preferences shifted towards more spending on services (such as travel), at the expense of physical goods. As a result, the company found itself with an excess of inventory which will likely pressure margins in the next few quarters (…read more)