Target Surpasses Apple as Top Performer Among 'Magnificent Seven'
Apple's remarkable run this year has been impressive, but another stock is stealing the show. The 'Magnificent Seven' giants have seen Apple lead the pack with a 25% year-to-date increase, but Target (TGT) has surpassed them all, up 61%. Despite being overlooked by investors just a year ago, Target's turnaround plan under CEO Michael Fiddelke is paying off.
Fiddelke was initially dismissed as an insider, but his four-pillar plan to revitalize the company is bearing fruit. With budgeted $2 billion in incremental operational improvements and store renovations, Target is turning its sales and comps positive. The market has responded accordingly, with earnings revisions and a robust 2.95% dividend yield.
The retailer's valuation of 15 times this fiscal year's earnings estimates may seem steep, but it's still considered reasonable given the company's growth prospects. Apple may be checking off boxes for investors, but Target is the one with the impressive performance this year.