
Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Target (TGT) or TJX (TJX). But which of these two companies is the best option for those looking for undervalued stocks?
Target Corporation is an American retail corporation. Their retail formats include the discount store Target, the hypermarket SuperTarget, and small-format stores previously named CityTarget and TargetExpress before being consolidated under the Target branding.
| Revenue (TTM) | $107.70B |
| Gross Profit (TTM) | $30.57B |
| EBITDA | $8.59B |
| Operating Margin | 6.04% |
| Return on Equity | 26.40% |
| Return on Assets | 5.69% |
| Revenue/Share (TTM) | $237.37 |
| Book Value | $39.28 |
| Price-to-Book | 4.02 |
| Price-to-Sales (TTM) | 0.67 |
| EV/Revenue | 0.789 |
| EV/EBITDA | 9.18 |
| Quarterly Earnings Growth (YoY) | 100.50% |
| Quarterly Revenue Growth (YoY) | 5.30% |
| Shares Outstanding | $454.30M |
| Float | $452.78M |
| % Insiders | 0.27% |
| % Institutions | 89.65% |
Volatility is currently expanding

Investors looking for stocks in the Retail - Discount Stores sector might want to consider either Target (TGT) or TJX (TJX). But which of these two companies is the best option for those looking for undervalued stocks?

Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.

Target Corporation is upgraded to "Hold" as operational turnaround gains traction and financials improve. TGT's revenue rose 6% year-over-year to $51.98 billion, with comparable sales up 4.7% and digital sales up 8.8%. Profitability is stabilizing, aided by cost-cutting, store expansion, AI-driven initiatives, and significant debt reduction.

Target's next quarterly dividend won't be paid out until December, but the stock goes ex-dividend the morning of Nov. 10. With more than 50 years of hikes, it's a fair bet that the distributions will get higher year after year.

Target is rated a buy, offering a more attractive valuation than WMT and COST despite recent share price gains. Target demonstrates strong profitability, with operating margin reaching 9.6% in Q2, even after excluding one-off tariff refunds. Forward P/E for TGT is ~14.7x, significantly below WMT and COST, while expected growth is nearly identical to WMT, suggesting potential for multiple expansion.

Does Target (TGT) have what it takes to be a top stock pick for momentum investors? Let's find out.

Both retailers raised guidance and collected tariff refunds, but how they pay shareholders could not be more different, and for retirees that gap matters more than any quarterly earnings beat.

Recently, Zacks.com users have been paying close attention to Target (TGT). This makes it worthwhile to examine what the stock has in store.

Alibaba generated consistently higher revenue than Target across the last eight comparable quarters, as measured in U.S. dollars. The two companies demonstrated mostly steady quarter-over-quarter revenue trends, with both organizations experiencing pronounced seasonal spikes during the holiday quarters.

Target's digital sales growth accelerates as its 2,000-plus stores power faster deliveries, stronger fulfillment and greater e-commerce convenience.
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