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Company name Target Corporation
Stock ticker TGT
Live stock price [stckqut]TGT[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $46.19
Target stock price (averages with growth) $58.42
Target stock price (averages with no growth) $56.96
Target stock price (manual assumptions) $326.09

The following company description is from Google Finance: http://www.google.com/finance?q=tgt

Target Corporation sells a range of assortment of general merchandise and food in its stores. The Company’s general merchandise and CityTarget stores offer a food assortment on a smaller scale and its SuperTarget stores offer a line of food items comparable to traditional supermarkets. The Company operates in three segments: U.S. Retail, U.S. Credit Card and Canadian. The Company’s U.S. Retail Segment includes all of its United States merchandising operations. The Company’s U.S. Credit Card Segment offers credit to qualified guests through its credit cards: the Target Credit Card and the Target Visa. Its Canadian Segment includes costs incurred in the United States and Canada related to its Canadian retail market entry. As of February 2, 2013, the Company had 1,778 stores in 49 states and the District of Columbia. It also owns three distribution centers in Canada, with a total of 3,963 thousand square feet.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Target Corporation.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $63.2

Growth: 0.19

Current EPS (TTM): $3.73

P/E: 59

Future EPS Calc: $8.9

Future Stock Price Calc: $525.16

Target stock price: $326.08

I hope that this makes you a better investor. [/s2If]

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Company name Target Corporation
Stock ticker TGT
Live stock price [stckqut]TGT[/stckqut]
P/E compared to competitors Good
MANAGEMENT EXECUTION
Employee productivity Poor
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor
ANALYSIS
Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $37.32
Target stock price (averages with growth) $47.07
Target stock price (averages with no growth) $47.65
Target stock price (manual assumptions) $49

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in this stock.


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Company name Methode Electronics Inc.
Stock ticker MEI
Live stock price [stckqut]MEI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $54.89
Target stock price (averages with growth) $54.67
Target stock price (averages with no growth) $25.06
Target stock price (manual assumptions) $49.42

The following company description is from Google Finance: http://www.google.com/finance?q=mei

Methode Electronics, Inc. (Methode) is a manufacturer of component and subsystem devices. The Company designs, manufactures and markets devices employing electrical, radio remote control, electronic, wireless and sensing technologies. The Company operates through segments, including Automotive, Interface, Power Products and Other. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Interface segment provides a range of copper and fiber-optic interface and interface solutions. The Power Products segment manufactures braided flexible cables, current-carrying laminated bus devices, custom power-product assemblies, such as PowerRail solution, high-current low voltage flexible power cabling systems and powder coated bus bars. The Other segment includes medical devices, inverters and battery systems, and insulated gate bipolar transistor solutions.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Methode Electronics Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Methode Electronics Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(access_s2member_level1)]

In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $36.16
  • Growth: 0.17
  • Current EPS (TTM): $2.2
  • P/E: 16.5
  • Future EPS Calc: $4.82
  • Future Stock Price Calc: $79.58
  • Target stock price: $49.41

[/s2If]
I hope that this makes you a Confident Investor.

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IBM International Business Machines

Company name International Business Machines Corp.
Stock ticker IBM
Live stock price [stckqut]IBM[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Poor
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $140.82
Target stock price (averages with growth) $184.37
Target stock price (averages with no growth) $185.92
Target stock price (manual assumptions) $165.02

The following company description is from Google Finance: http://www.google.com/finance?q=ibm

International Business Machines Corporation (IBM) is an information technology (IT) company. IBM operates in five segments: Global Technology Services (GTS), Global Business Services (GBS), Software, Systems and Technology and Global Financing. GTS primarily provides IT infrastructure services and business process services. GBS provides professional services and application management services. Software consists primarily of middleware and operating systems software. Systems and Technology provides clients with business solutions requiring advanced computing power and storage capabilities. In October 2013, International Business Machines Corporation acquired Xtify Inc. In October 2013, the Company announced that it has completed the acquisition of The Now Factory, a privately held provider of analytics software that helps communications service providers (CSPs) deliver better customer experiences and drive new revenue opportunities.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in International Business Machines Corp.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $179.68

Growth: 0.08

Current EPS (TTM): $14.47

P/E: 12.5

Future EPS Calc: $21.26

Future Stock Price Calc: $265.76

Target stock price: $165.01

I hope that this makes you a better investor. [/s2If]

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While you are enjoying the beginning of summer with a 3-day weekend. Please do not forget why you are not working today.

Remember those who served. All gave some and some gave all they had.