Using the logarithmic view of Target, it looks like we're nearing the bottom of the stock.
From a fundamental standpoint, there are several reasons to be optimistic that it will go higher:
- Incorporating a Starbucks location in their stores helps boost foot traffic and has lately allowed customers to order Starbucks alongside their groceries and other items for curbside pickup
- The fear on consumer spending dropping because of the resuming of student loan payments is overblown as most people that have to pay student loans are in higher paying jobs. The higher discretionary sales mix that Target has puts this in their favor as people will still spend on discretionary items in its stores.
- Concerns on the health of consumers affect Target less as their customer base is generally higher income.
- Target has tackled its excess inventory issues from last year
With a near 4% dividend yield, it's a great stock to buy and hold for the long run.