Target (TGT) is a leading discount retailer concentrated in California, Texas, Florida and the upper Midwest. It has grown profits and dividends at an 11-14% pace over the last 10 years earning a 15%+ return on equity.
The company faltered a bit in its 2008 fiscal year due to the slowing economy but has since recovered and should continue growing at an above average rate as a result of:
(1) improving comparable store sales and operating margins due to its product innovation, aggressive pricing strategy and its efficient, multi channel marketing strategy,
(2) rising store productivity arising from expanded grocery offering, better store layout and an enhanced in-store shopping experience,
(3) introduction of smaller stores in urban markets,
(4) expansion internationally.
(5) active stock buyback program.
