Stephanie Link Is A Buyer Of Target

On CNBC's "Closing Bell," Stephanie Link said that she added Target Corporation TGT to her portfolio on Thursday as a new position.

The company suspended guidance in March, but on Thursday we got an update, said Link. She added that the first quarter trends are mixed. On the positive side, same-store sales were above 7% and digital same-store sales were up a 100%.

On the negative side, gross margins are coming down and earnings have to be revised down, said Link. She thinks that the company is underperforming its peers because of the challenging environment and also due to its big apparel mix that has to be written down.

Link likes when the company invests for the future growth, to grow customers and to improve technology because that is positive for the long-term. While the earnings are coming down now, next year they can grow 22%, said Link. She feels that the risk-reward is great.