#1 TGT benefits from a stellar dividend growth history and classic business model in order to maintain the interest of investors.

#2 Many investors see TGT as being the opportunity of the year and claim it is clearly oversold.

#3 On my side, all I see is declining revenues, margins under pressure and no growth vectors.

#4 TGT is a screaming sell, prove me otherwise!

All the time I find too many articles telling me how Target (TGT) is a great company and that it is being oversold. This is probably the opportunity of the year… really? In this article I’m going all-in to destroy this company and show you how bad it is. I do it this way because sometimes, we need a good slap in the face to wake-up from our fantasy. You can thank me later.

#1 No revenue growth

My first point is Target didn’t show the ability to grow their revenue through the past decade. When you look at the graph below, you see an annualized revenue growth rate of 0.96%.

Source Ycharts

In the meantime, I keep reading articles telling me how the U.S. economy is growing at a mediocre rate with no really strong tailwinds:

Source: Ycharts

Well… the no-tailwind-mediocre-growth-rate of the U.S. GDP is still three times bigger than Target. If the GDP is going up, unemployment rate is going down and American customers’ confidence is strong, can you tell me where TGT revenue will be once we hit a recession? The company is showing no ability to grow their revenues. This is very scary.

#3 Where are the growth vectors?

I’m pretty sure management is well aware of the situation. Therefore, I’m sure they all called their buddies and held an offshore meeting to make sure they had clear ideas on how to build the “new Target”. You know the one that will generate growth?

A few years ago, a smart guy in the upper management level team had a great idea while sipping his whisky: Why not conquer the Canadian market? Sound idea. I’m not being sarcastic here. The Canadian market is very close to the U.S., not only geographically speaking, but in terms of culture too. Well, this is what we thought anyways! Here’s what actually happened when they tried to do business with their neighbors: