Target Stock Starting 2021 Off Strong

TGT scored a record high yesterday

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Retail giant Target Corporation (NYSE:TGT) has had a rip-roaring start to 2021, scoring a record high of $192.34 yesterday. The shares are up 83% in the last nine months, with their 50-day moving average containing pullbacks along the way. Analysts are starting to notice, with Credit Suisse upping its price target to $211 to $192 today. 

Options traders must be enjoying the upside. The security's 50-day call/put volume ratio of 2.47 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 91% of readings from the past year. In other words, there is a healthier-than-usual appetite for long calls of late.

Now certainly seems like a great opportunity to weigh in on TGT's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 31% sits in the extremely low 16th  percentile of its annual range. In other words, the stock sports attractively priced premiums at the moment. 

Target stock has a forward dividend of $2.72 and a forward dividend yield of 1.44%. TGT’s last dividend was paid out to investors at a rate of $0.68 per share. The company has paid investors dividends since 1967.
Target's revenue and net income growth were also substantial last year. The company added about $10.5 billion in revenue and nearly $600 million in net profits over the past 12 months, throughout the Covid-19 pandemic. Looking beyond just the past year, Target has grown its top and bottom lines consistently over the past four years.
Although TGT currently has a price-earnings ratio of 25.35, that number is expected to come down to a much more attractive value in the near-term. Target stock has a forward price-earnings ratio of 20.92. Overall, Target stock is fundamentally solid, but the most promising line item for potential investors to note right now for Target is its rapid and consistent revenue growth.
TGT stock chart

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