target income miss the mark After delivery Lower-than-expected profits for the second quarter of 2022.
As of opening of trading on August 17, 2022, target share hovered around $174 per share. That’s up from a price of about $149 per share a month ago at the close of trading on July 18, 2022.
If you had invested $1,000 a year ago, you would have lost money since then. As of August 16, 2022, your investment will be worth about $694, according to CNBC calculations. Target stock was trading around $180 per share at the market close on August 16, 2022.
However, if you had invested $1,000 five years ago, your investment would have appreciated a little more than 200% and would have been worth about $3,417 as of August 16, 2022.
If you had let your $1,000 grow over a decade, you would have about $3,170 now as of August 16, 2022.
Amid changing consumer spending habits, the big-box retailer has issued a Warning in June Profits are said to take a short-term hit as it cancels orders and cuts prices to clear excess inventory.
“We’re starting to see some inflationary pressure as some retailers, such as Target, hold on to excess inventory due to supply chain delays, seasonal mismatches and changes in consumer tastes,” said Ted Rossman, senior industry analyst at Bankrate.
The company predicts that sales growth and profit margins are expected to recover in the latter half of the year as it makes room for products that shoppers need, such as household essentials and school supplies.
This is a big change from a few years ago. At the height of the Covid-19 pandemic, Target’s 2020 sales grew to more than $15 billion, boosted by increased online sales and use of its curbside pickup service. That’s more growth in one year than the retailer has experienced in the past decade.
If you’re interested in investing in Target or other companies, remember: Given the unpredictability of the stock market, you shouldn’t try to use a stock’s past performance to predict how well it will do in the future.
For most investors, a passive investment strategy makes sense over individual stock selection. For that, try investing in an index fund like the S&P 500, which tracks the stock performance of the 500 largest American companies.
While the S&P 500 has contracted 4.36% over the past year, the index has gained 73.59% over the past five years and 202.67% over the past decade.