Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.
Target’s Big Decade
One of the market laggards of the past decade was retail giant Target Corporation (NYSE: TGT).
The 2010s were a transformative decade for the retail sector. Amazon.com, Inc. (NASDAQ: AMZN) applied major pressure to a large portion of the sector, and Target was no exception.
Target kicked off the 2010s by announcing its first international expansion into Canada in 2011. It opened its first Canadian stores in March 2013 and eventually grew its Canada presence to 133 stores. Unfortunately, Target Canada was a huge flop and ultimately resulted in $2.1 billion in losses. Target eventually closed and liquidated all of its Canadian stores by the end of 2015.
Target’s online expansion was much more successful. In 2017, the company announced Drive Up, a new service that allowed customers to order items online for in-store pickup. In the most recent quarter, Target said online sales were up 31%, while same-store sales growth was 4.5%.
Target shares started the 2010s trading at around $48. By the mid-2011, Target shares had dipped as low as $45.28, a price which would mark its low point of the decade. However, while Target shares held their ground from that point forward, gains were difficult to come by until the past two years.
Target climbed as high as $85.81 in mid-2015 on the home that the company was finally moving beyond its Canada debacle. Unfortunately, slumping same-store sales and heavy investing in online sales and in-store pickup dragged the stock back down to as low as $48.56 in mid-2017. Target finally broke out to new highs in late 2018, reaching $90.39 before another steep correction pulled the stock back down to $60.15 by year’s end.
2020 And Beyond
Target once again broke out to new highs in mid 2019 and made it as high as $130.24 by the end of the decade.
Target has since pulled back to around $102 following the coronavirus outbreak, and the stock was a bit of a disappointment for investors in the past decade. In fact, $100 worth of Target stock in 2010 would be worth about $263 today, assuming reinvested dividends.
Looking ahead, analysts expect a big year from Target in 2020. The average price target among the 26 analysts covering the stock is $136, suggesting 33.4% upside from current levels.