Bullseye On Success: This Major US Retailer Hits Golden Cross, Will Bulls Charge In?

A dividend king stock just made a Golden Cross, indicating bullish sentiments among traders. What company is this? A few hints: a discount retailer that has a long history of paying and growing dividends for more than 50 years, has a 5-year average annualized dividend growth rate of 11.44% and a YoY TTM dividend growth rate of 5.80%.

Yes! You guessed right: Target Corp TGT. This Minnesota-based company is the seventh-largest retailer in the U.S. and a component of the S&P 500 Index.

On Jan. 18, Target’s stock price’s simple moving averages just made a Golden Cross, indicating bullish sentiments around the stock.

Also Read: Grocery Wars – Walmart Maintains Dominance With Lowest Prices In December, Target Retains #2 Spot: Analyst

The 50-day SMA for Target stock just crossed over the 200-day SMA, indicating bulls taking over market sentiments towards the stock.

Target, a resilient retail giant, distinguishes itself through diverse, affordable products, and robust digital strategies. Despite industry challenges, the company boasts a large customer base, a strong private labels portfolio and an omnichannel approach across 1,900-plus stores.

Financial concerns, including tight dividend coverage and cash flow pressures, exist. However, its more than 50 years of dividends, a reasonable forward P/E of 16.9x, and consistent share buybacks showcase Target’s potential for long-term growth. These catalysts are also backed by strategic initiatives and shareholder-friendly practices existing at Target.

Recent analyst reports have also set a bullish tone for the stock:

• On Jan. 16, Target was upgraded by Morgan Stanley analyst Simeon Gutman from Equal-Weight to Overweight with a raised price target of $165 a share.
• This came in after Wells Fargo’s George Kelly, on Jan. 4, maintained his Overweight rating on the stock while raising his price target to $155 a share.

The technical setup, the fundamental strength and the analyst conviction together put Target stock in a good spot right now.

TGT Price Action: Target stock was trading at $138.21 at the time of publication Friday.

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