Target Corporation Stock Is Overvalued

303 Words2 Pages

Target Corporation stock is overvalued. Target is planning on raising it minimum wage, and cutting prices on many of their items and investing billions into upgrades. Target Corporation stock is impacted by two things related to what it sells, price and convenience. If a consumer needs something right away the availability of a Target store is most likely close by this will play a big factor by the consumer if that product is going to be purchase at Target. However, to compete on price with Walmart and Amazon, Target announced price cuts on thousands of products. The result will undoubtedly be lower margins. Target stock is already suffering there, as operating margins got destroyed in the second quarters, falling to 6.8% from 7.7% on the

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