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News  ›  The Motley Fool

Top Stocks to Double Up on Right Now

The Motley Fool Logo The Motley Fool By Lawrence Rothman, Cfa
Top Stocks to Double Up on Right Now

Target and Walt Disney, both underperforming the market, present buying opportunities for patient investors. Target's stock has fallen 23% over the past year due to lackluster sales and management missteps, but new CEO Michael Fiddelke plans to return the company to its differentiated merchandise roots. Disney's shares gained only 1.7% over the past year despite its strong media properties across entertainment, sports, and experiences. Both stocks now trade at attractive valuations with P/E ratios significantly below market averages, positioning them for potential recovery as economic conditions improve.

Insights
TGT   positive

Stock has declined 23% over the past year, creating an attractive valuation (P/E of 13 vs S&P 500's 31). New CEO plans to restore differentiated merchandise and improve shopping experience. Author believes earnings growth and P/E multiple expansion will drive future stock price increases as economic conditions improve.