Target (NYSE: TGT) has transformed itself over the last decade, going from a middling big-box chain to a unique omnichannel retailer with a number of competitive advantages. The company has invested in store-based fulfillment, coaxing customers into picking up their online orders, which is a more cost-effective way of fulfilling them than shipping from warehouses. Consequently, the stock has been a big winner over the last decade, but more recently it's struggled as shopping habits have shifted back to services and the company has struggled to manage its inventory.
Rising interest rates prompted many investors to rotate from dividend stocks toward higher-yielding fixed-income investments like bonds, T-bills, and CDs over the past year. Over the past two decades, a modest $3,000 investment in Taiwan Semiconductor Manufacturing (NYSE: TSM), Procter & Gamble (NYSE: PG), and Target (NYSE: TGT) would have blossomed into roughly $87,000, $17,000, and $23,000, respectively, if you had reinvested their dividends through a dividend reinvestment (DRIP) plan.
Zacks.com users have recently been watching Target (TGT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.