5 Stocks In Trouble as Americans Cut Back on Spending

3. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 50

Target Corporation (NYSE:TGT) is one of the biggest American general merchandise retailers. Credit Suisse analyst Robert Moskow on June 10 reaffirmed an Outperform rating and a $180 price target on Target Corporation (NYSE:TGT), but lowered his FY22 EPS estimates to $8.59 from $13.56 after the company announced that the FY22 profit expectations were reduced further as it “focuses on getting through the unwanted inventory pile-up resulting from consumers shifting their spending from discretionary products to essentials”. This comes on the heels of an already slashed profit outlook issued with the company’s Q1 earnings.

According to Insider Monkey’s database of elite hedge funds, Target Corporation (NYSE:TGT) was part of 50 public hedge fund portfolios at the conclusion of the first quarter of 2022. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading shareholder of the company, with a position worth $530.5 million. 

Here is what Nelson Capital Management has to say about Target Corporation (NYSE:TGT) in its Q2 2021 investor letter:

“We added Target (tkr: TGT) to our consumer staples sector. Target Corporation (NYSE:TGT) offers a broad array of products in owned and known brand items at affordable prices. Its omni-channel fulfillment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”