In any industry, market share is a key metric. How much of the total market one company gets can result in bigger profits, and also open up opportunities to take advantage of a larger size.
Investors remain wary about inflation and rising costs. Those costs are usually seen when making a purchase, even if inflation has worked its way through the entire system. Retail companies are working on ways to lower prices and knock down inflation.
One way is by finding products that can be sold at a lower price. Retailer Target (TGT) is working on plans to lower prices on about 5,000 frequently bought items.
That could help encourage customers to open up their wallets, and help the company boost its market share.
Target shares are up a scant 7% over the past year, rising about one-fourth as much as the overall market. The stock trades at 17 times earnings, and at 0.7 times its price to sales, a moderate discount to where it usually trades.
Action to take: Investors may like shares here or on any pullback. At current prices, Target pays a 2.8% dividend.
For traders, shares are gradually trending higher, but have pulled back in recent weeks. The September $170 calls, last trading for about $1.15, could see mid-to-high double-digit returns in the weeks ahead on a bounce higher from the current oversold levels.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.