Consider This Retail Player Ahead of the Holidays

Economists are predicting a gloomy holiday season. Real spending will likely be down thanks to slow economic growth and high inflation this year… not to mention the impact of supply chains.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!
  • But consumers still remain robust, so it’s likely that retailers may be oversold going into the holidays. Investors who buy today can grab a reasonable value in any of the big-name big-box stores here. And if things go better than expected, they’ll be well positioned for some quick profits.

    Among the big-box retailers, Target (TGT) has held up surprisingly well. Plus, they’re investing in online sales, with new stores that add curbside pickup and same-day delivery options.

    That should help the retailer move higher from here, following its 40 percent decline in the past year. Plus, shares trade at 13 times earnings, a discount to other big-box peers.

    Action to take: Shares look well-priced for buyers now. And at current prices, shares yield 2.7 percent, and Target has been growing that payout in recent years. This holiday season could make for a good long-term buying point for shares.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • For traders, the March $190 calls, last going for $6.25, offer a leveraged way to trade a move higher in shares during and following the holiday season. Traders can likely nab mid-to-high double-digit gains on the stock from here.

     

    Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.