Slower Consumer Spending Dragged Target Corporation (TGT) in Q2
Diamond Hill Capital, an investment management company, released its “Large Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. Markets rose modestly in the second quarter of 2024, providing positive returns across most regions and countries. The strategy trailed the Russell 1000 Index in Q2 and returned -3.90% (net) vs 3.57% for the index. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2024.
Diamond Hill Large Cap Strategy highlighted stocks like Target Corporation (NYSE:TGT), in the second quarter 2024 investor letter. Target Corporation (NYSE:TGT) is a US-based general merchandise retailer. The one-month return of Target Corporation (NYSE:TGT) was -0.43%, and its shares gained 42.32% of their value over the last 52 weeks. On September 24, 2024, Target Corporation (NYSE:TGT) stock closed at $156.18 per share with a market capitalization of $71.948 billion.
Diamond Hill Large Cap Strategy stated the following regarding Target Corporation (NYSE:TGT) in its Q2 2024 investor letter:
"Other bottom contributors in Q2 included CarMax, Target Corporation (NYSE:TGT) and ConocoPhillips. US-based mass retailer Target faces concerns about a slowing consumer discretionary spending environment, which weighed on shares in the quarter."
A woman purchasing groceries at a Target store, with a cart full of products.
Target Corporation (NYSE:TGT) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Target Corporation (NYSE:TGT) at the end of the second quarter which was 67 in the previous quarter. While we acknowledge the potential of Target Corporation (NYSE:TGT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Target Corporation (NYSE:TGT) and shared the list of Jim Cramer’s best stocks to buy after Fed rate cut. Target Corporation (NYSE:TGT) detracted from the performance of Carillon Eagle Growth & Income Fund in Q2 2024, due to consumer softness in discretionary goods. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.