In this article, we discuss the 5 best environmental stocks to invest in. If you want to read our detailed analysis of these environmental-friendly stocks, go directly to the 12 Best Environmental Stocks to Invest In.
5. Target Corporation (NYSE: TGT)
Number of Hedge Fund Holders: 60
Target Corporation (NYSE: TGT) ranks 5th on the 12 best environmental stocks to invest in. The Minneapolis-based general merchandise retailer offers everything from perishable and frozen goods, dry grocery to electronics, home improvement products, and household products. Target Corporation (NYSE: TGT) currently pays shareholders an annual dividend of $3.60 per share with a 1.50% dividend yield. TGT stock has offered more than 103% returns to investors in the past twelve months. Shares of TGT are also up 21% in the past three months.
Target Corporation is one of the giant retailers that offers solid recycling solutions to help the environment. In 2010, the company introduced a recycling kiosk in Target stores, which has prevented thousands of tons of recyclable plastic from ending up in landfills. Target Corporation installed solar rooftops in more than 500 stores and distribution centers in 2019, clearly set a goal of having solar rooftops in each Target store in 2015.
The company has a market cap of $119 billion. The company’s first-quarter revenue grew 23.4% year over year to $24.5 billion. In 2021, the company’s first-quarter operating income margin rate was 9.8%, up from 2.4% in 2020. As of July 2, Target Corporation (NYSE: TGT) shares traded at $246.58 and have a P/E ratio of 20.13. On June 23rd, Argus Research maintained a Buy rating on Target Corporation, with a price target of $265 per share.
At the end of the first quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $4.76 billion in Target Corporation (NYSE: TGT), down from 78 the preceding quarter worth $4.06 billion.
In its Q1 2021 investor letter, investment management firm LRT Capital Management mentioned Target Corporation (NYSE: TGT) and shared their insights on the company. Here is what the fund said:
“Target, the Minneapolis-based retailer, continues to fire on all cylinders as the company has reported two quarters in a row of +20% revenue growth (5% traffic growth + 15% average basket size6 ), coupled with the strongest EBITDA margins in over four years. The company has successfully navigated the Covid-19 pandemic, with online sales growing by 155% and 118% during Q3 2020 and Q4, respectively.
On March 2nd, the company reported another stellar quarter, with same-store sales growing by over 20%, and both earnings (+57% YoY) and revenues (+21% YoY) beating estimates. The shares are up 14.11% year-to-date. We believe the shares are a bargain 23x trailing and 20x forward earnings.”
