Target (NYSE:TGT) is one of the 10 largest retailers in the United States. Retail has had a tumultuous decade, but Target is one company that has thrived in this environment. The stock has achieved average annual returns of 11% over the past 10 years.
Shares of Target have climbed 96% in 2019 as of close on November 22. The company released its third quarter 2019 results on November 20. Target blew passed analyst estimates in the quarter, which spurred on the company to raise its full-year profit outlook.
Revenue at Target rose to $18.67 billion in the quarter, which was up 4.7% from the prior year. Net income climbed to $714 million or $1.39 per share compared to $622 million or $1.17 per share in Q3 2018.
Target also reported same-store sales growth of 4.5%, which exceeded analyst projections of 3.6% growth for the quarter. The company has now reported same-store sales growth for 10 consecutive quarters.
Like other retailers with a big brick-and-mortar footprint, Target has worked to boost its e-commerce offerings. Target said that digital sales increased 31% year-over-year in the third quarter. Its same-day delivery options, which included buy online, pick up in store, and curbside pick up accounted for 80% of digital sales growth.
Target stock closed just below its 52-week high on November 22. The stock boasts a consensus forward price-to-earnings ratio of 19, according to Morningstar analysts, but its price-to-book value sits at 5.5.
Investors are paying a premium for Target stock in late 2019 after what has been a stellar year so far.
