5 Undervalued Non-Tech Stocks to Buy in 2022

4. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49   

PE Ratio: 15.55   

Target Corporation (NYSE:TGT) is a general merchandise retailer. The company posted earnings for the first quarter of 2022 on May 18, reporting a revenue of $25.1 billion, up close to 4% compared to the revenue over the same period last year and beating expectations by $690 million. The comparable sales over the first three months of 2022 grew 3.3%, reflecting traffic growth of 3.9%. The digital comparable sales were also up by 3.2%. The firm expects operating income margin rate to be around 6% in 2022. 

On May 19, Bank of America analyst Robert Ohmes maintained a Buy rating on Target Corporation (NYSE:TGT) stock and lowered the price target to $235 from $289, noting that food inflation would continue to benefit traffic and comp sales. 

Among the hedge funds being tracked by Insider Monkey, Florida-based GQG Partners is a leading shareholder in Target Corporation (NYSE:TGT), with 4.9 million shares worth more than $1.1 billion. 

In its Q2 2021 investor letter, Nelson 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:

“We added Target Corporation (NYSE: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 Corporation (NYSE:TGT) is an attractive holding.”