Why Pete Najarian Bought More Target Stock Today

With Target Corp TGT shares down nearly 10% over the last month, Market Rebellion co-founder Pete Najarian decided to add to his stock position. 

"When I look at that P/E, it's just too low right now," Najarian said Monday on CNBC's "Fast Money Halftime Report."

At current levels, Target's price-to-earnings ratio is about 16.5, according to data from Benzinga Pro. For reference, the S&P 500 Index is currently trading at a price-to-earnings ratio of around 30.

Target shares traded as high as $270 in recent months before pulling back. Najarian attributed most of the selling to profit taking. 

"They decided that they wanted to take some profits ... it had an absolutely explosive move to the upside," he said.

Najarian also pointed to the "explosive growth" that Target has shown. 

In 2021, Target reported $15 billion in sales growth, according to Najarian. "I mean, that's a monstrous number," he said. "That number actually dwarfs what they've done over the last decade."

See Also: 10 Biggest Price Target Changes For Monday

The management team is executing well, which can be seen by the growth in digital sales, he noted. 

During the company's most recent earnings report, Target announced that digital sales grew 29% year-over-year.

Najarian told CNBC that he expects Target to "easily" trade back up to near its highs and "maybe a little bit more than that."

TGT Price Action: Target has traded as high as $268.98 and as low as $166.82 over a 52-week period.

The stock was up 1.14% at $223.53 at the time of publication.

Photo: courtesy of Target.