Second, worries that a recession might set in do not help companies that live and die on consumer spending. So Target is being lumped into that concern.
Third, controversy has not had a great effect on stocks in the short term. That’s been notable with names like Anheuser-Busch (BUD) - Get Free Report, but now it’s also clear in names like Target. To be sure, I think the first two factors have had a bigger impact than this, as Target shares have been struggling for months now.
The valuation for Target stock is reasonable — if management doesn’t lower guidance. Since we don't know whether that will be the case, investors can work with only what we know right now, which is that Target is a consistent dividend-paying stock and the shares are trading into prior support.
A simple look at the weekly chart shows the stock down almost 50% from the all-time high, while it's currently trapped between $138 to $140 on the downside and about $180 on the upside. The 52-week low is $137.13.
Investors could buy Target stock around $140, use a stop-loss just below this range — say, something like $135 — and at the very least look for a rebound to the $160 area, then potentially $180.
A breakout over $180 would leave buyers in a great position with a low cost basis, although plenty needs to happen before that takes place.
The bottom line is simple: Each investor can build a trade to fit their risk profile, but this is one reasonable way to look at Target stock from a technical and fundamental perspective.
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