Is TGT a good stock to buy now? We came across a bullish thesis on Target Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on TGT. Target Corporation’s share was trading at $115.75 as of March 12th. TGT’s trailing and forward P/E were 14.61 and 14.84, respectively according to Yahoo Finance.
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Target Corporation operates as a general merchandise retailer in the United States. TGT is navigating near-term pressures while positioning for a potential recovery, with inventory normalization and margin improvement as primary focus areas. The company, founded in 1902, operates approximately 1,850 big-box stores across the U.S., offering general merchandise and food, while also serving as distribution hubs for its e-commerce business. Target is expected to generate over $100 billion in revenue in 2025 and maintains a remarkable 57-year streak of dividend increases, placing it among the elite Dividend Kings.
Its payout ratio of 62% of expected earnings suggests a secure dividend, supported by Target’s scale-driven ability to offer everyday low prices and its reputation for guest-friendly stores. Despite these strengths, the company faces intense competition from Walmart, Amazon, and Costco, which may limit near-term growth. Third-quarter 2025 earnings exceeded expectations, with adjusted EPS of $1.78, seven cents above estimates, reflecting an average annual EPS growth of roughly 8% over the past decade.
Looking forward, management expects more modest growth of approximately 5% annually. Target shares recently traded at a forward P/E of less than 13 against a target of 14, signaling potential undervaluation. What distinguishes Target further is its near-5% dividend yield, offering investors both income and long-term growth potential.
Combined with a competitive advantage rooted in scale and pricing, this positions Target as a high-quality stock for investors seeking reliable dividends and the prospect of valuation multiple expansion. While near-term pressures persist, stabilization in consumer demand could rebuild earnings momentum, providing a compelling entry point with attractive risk-adjusted upside.
Previously, we covered a bullish thesis on Target Corporation (TGT) by LongYield in May 2025, which highlighted near-term pressures, declining foot traffic, and margin challenges, while outlining recovery potential. TGT’s stock price has appreciated by approximately 22.75% since our coverage. @MoneyShow shares a similar view but emphasizes inventory normalization, margin improvement, and Target’s long-term dividend strength as key drivers.
Target Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 58 hedge fund portfolios held TGT at the end of the fourth quarter which was 52 in the previous quarter. While we acknowledge the risk and potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TGT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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