Target took a tough hit over the last holiday season when shopping didn't go the way the company hoped or expected. Amazon and their two-day shipping standard have turned the whole shopping world on its head, which hasn't boded well for brick and mortar giants like Target. Naturally, the big box store doesn't plan to take things lying down, and it's fighting back. Whatever the long term result, there are plenty of similar stock options. Here are our top ten stocks to consider if you like Target.
10. J C Penney Company Inc: JCP
At the bottom of our list is JCP. Though they've had it rough lately with stores set to close, we're adding this penny stock to the list for day traders who are looking for a fast turn around buying low and selling when it's up a bit. We're not sure if old fashioned businesses like JCP and Marshalls will ever recover in the internet era, but there's still time to take advantage of the lower risk highs and lows while they're around.
9. Bed Bath & Beyond Inc: BBBY
Like many brick and mortar shops, BBBY has taken its knocks. However, there are two excellent reasons we like this company for more than its' outstanding selection of sheets. Investors have been dumping their BBBY stocks, and the value is certainly down. Buying low is great, as long as you can make your money back. First, looking at the trend in the home furnishings and accessories superstore, there's an upward trend right now. We suggest buying low and holding, but not for too long. Secondly, if you and BBBY can last the year, then the 4.79% dividend is more than generous.
8. Nordstrom, Inc: JWN
JWN is doing better than a lot of shopping mall staples. The highs have been under a hundred per share, but there's earning potential her in spite of the dramatic lows. We think Nordstrom is one of those investments that is going to continue to rollercoaster around. However, a good buy-low and hold until you can sell it at a tidy profit is for this option. We think they'll make it for a while at last. However, any store that isn't a part of the digitalization movement, in the long run, is likely to go under, and the bigger shops are falling hardest.
7. Macy's Inc: M
Like JWN, Macy's has managed to keep themselves going in the increasingly digital era. Department stores have been at a disadvantage for years, and some, like Sears, had to file bankruptcy. However, Macy's has managed to remain strong, and they're even testing out a new idea for a brick and mortar stand-alone shop later this year.
6. Best Buy Co Inc: BBY
We know the news that's been on everyone's mind lately for BBY has relatively little to do with its stocks. Yet it may surprise you to learn that the conduct of CEO Corey Barry did cause a dip in the stock value. However, Best Buy rebounded just fine after the incident and remains the consumer electronics king. Too many investors have been holding off because of the news, instead of remembering that in six months or a year, it won't matter, and no one will be talking about it. We say buy now before everyone realizes their mistake.
5. Wayfair Inc: W
With eleven thousand suppliers spread around the globe, it's no wonder Wayfair is so popular. This virtual home decor shop promises customers over fourteen million individual items. While W isn't as popular as Amazon, they've certainly managed to take over and hold their corner of the digital sales world. Although it can be a tough ride, it nevertheless appears that this stock roller coaster can be an incredibly profitable investment if shareholders can hold on through the dips.
4. Ross Stores, Inc: ROST
Like many discount stores, Ross has gained in popularity over the years. Had you bought in during the 1980s when it was a mere penny stock that was under a dollar for the first decade of its public trading, then you might be sitting on a gold mine. With current stock values hovering around $112 (as of this writing), that's a substantial profit. Additionally, looking at the companies' overall chart, it's easy to see that this is one business that has been headed up in stock value fairly consistently for the last twenty years. We'd predict that this is likely to continue, and it's a wise choice to buy as low as possible, though the dips aren't substantial.
3. Five Below Inc: FIVE
Many large retailers had a disappointing holiday season, but one shop surprised us with increasing popularity. Although FIVE has had its share of rollercoaster moments lately, and they're down at the moment, we think this stock might be undervalued. Like ROST, Five Below offers consumers a very valuable discount service. We think things will continue their generally upward trend and buying lower now will put you ahead of the game for the next holiday season. Despite the naysayers, we think the over-time earnings on this stock could be well worth the investment now.
2. Walmart Inc: WMT
The grocery wars are affecting everyone, even the massive Walmart. However, WMT and Kroger are managing to hold their own against Amazon's encroachment. It will be an interesting year given that AMZN is planning to open brick and mortar grocery stores. However, we're confident the giant will pull through, for now.
1. Costco Wholesale Corporation: COST
Easily topping our list is the wholesale grocery (and other product) retailer Costco. With a stock that's more than twice the value of anything else on this list, the company has managed to find a niche to fill selling bulk goods to people who need to make larger purchases to save money in the long run. Despite a fairly low dividend yield of 0.85%, COST has a lot to offer the savvy investor in long term gains.
We think Target may have a hard uphill battle ahead in their fight against Amazon, but they'll find a way to survive if leadership is forward-thinking. On the plus side, Target did benefit from Pier 1 closures recently. Regardless, any of these stocks are good choices to expand a portfolio that needs diversity. They all make solid choices to add shopping-related shares to your investments.
Written by Bill Vix
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