Ultimately, the decision of which retail stock may be the better investment comes down to whether investors want to bet on value for the long-term or growth and defensive safety at the moment.
I reiterate my buy rating on Merck, citing its attractive valuation and improving technicals despite sector headwinds. Merck's recent earnings beat was driven by strong oncology and cardiovascular portfolios, offsetting Gardasil weakness and Keytruda patent concerns. The stock offers a solid 4% dividend yield, low PEG ratio, and consistent growth, making it appealing for income and value investors.
Ulta Beauty and Target just announced they won't renew their five-year partnership after reaching 600 Ulta-Target shop-in-shops, falling short of their original goal of 800 locations. With the partnership ending in August 2026, Target's got a year to prepare to dismantle the Ulta in-store concessions, which can span up to 1,000 square feet, and repurpose the space.
BofA analysts downgrade Target, saying the retailer is “underperforming peers on sales, digital growth, and investments.”
Can Target turn it around?
Target Corp (NYSE:TGT) shares fell around 1.6% Friday after Bank of America downgraded the retailer to “Underperform” from “Neutral,” citing what it described as deteriorating long-term prospects. BofA lowered its price target to $93 from $105, noting that Target is lagging behind competitors on sales, digital growth, and strategic investments.
Beyond analysts' top-and-bottom-line estimates for Target (TGT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended July 2025.
Target and Ulta Beauty said Thursday (Aug. 14) that they have mutually agreed not to renew their shop-in-shop partnership when the current agreement expires in August 2026. The Ulta Beauty at Target experience, which offers access to beauty products and lets customers link their Ulta Beauty Rewards and Target Circle accounts, will continue in Target stores and on Target.
Retail giant Target Corp (TGT) is in the news today, after reports that the company will end its shop-in-shop partnership with Ulta Beauty (ULTA) in 2026. TGT is falling in response, last seen down 1.5% to trade at $103.83, though recent support at the $100 level remains below.
Snap's post-earnings plunge to 52-week lows presents a buying opportunity, as the stock appears oversold and technically poised for a potential rebound. Despite management's failure to create shareholder value since its 2021 peak, Snap's unique platform and young user base could make it an attractive acquisition target. Snap's fundamentals show revenue and user growth, and with a $12B market cap, it could easily be acquired by a tech giant or media company.
Target (TGT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The latest trading day saw Target (TGT) settling at $106.26, representing a +2.16% change from its previous close.