Investors Eye Target and Micron Amid Market Uncertainty
Uncertainty looms large in the stock market today. Following President Trump’s announcement of global tariffs on April 2, investors are navigating a mix of suspended reciprocal tariffs and escalating tensions in the trade war with China. Additionally, Trump’s inconsistent approach to electronics and potential easing of auto tariffs has left many investors confused.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Consequently, the S&P 500 (SNPINDEX: ^GSPC) has entered a correction, defined by a drop of at least 10% from its last peak. While the anxiety surrounding the trade dispute and recession risks weighs heavily on investors, those focused on long-term strategies recognize that market dips can present purchasing opportunities, making solid businesses more affordable.
Potential Recovery: Target
One stock under significant pressure is Target (NYSE: TGT), which has plummeted 65% from its pandemic peak. This decline is largely due to sluggish growth as consumer spending in discretionary categories falters, compounded by internal issues such as increased theft. In its most recent fiscal year, Target reported flat comparable sales and earnings.
The company anticipates flat earnings this year, forecasting earnings per share (EPS) in the $8.80 to $8.90 range. However, Target’s current valuation, priced at a price-to-earnings ratio of just 10.5, suggests that much of the negative outlook has already been factored in. This indicates potential for significant upside if earnings stabilize.
Target has announced plans to rejuvenate its brand by leveraging popular owned brands such as Cat & Jack and All in Motion, which have shown robust growth. The retailer aims to revive its “Tarzhet” image while planning new store openings and remodels, projecting at least an additional $15 billion in sales over the next five years.
With earnings significantly below previous highs, if Target can return to form, there’s considerable upside potential. Although external economic conditions may need to improve, any positive movement within the company could enhance its stock value dramatically.
Growth Prospects: Micron
Another promising stock at a discount is Micron (NASDAQ: MU), a leading producer of memory chips for computers. Micron’s market is notably cyclical, heavily influenced by consumer demand fluctuations, as witnessed during the 2022 downturn.
Currently, Micron benefits from robust demand from the burgeoning AI sector. Recent quarterly results showed its data center revenue more than doubled, contributing to an overall revenue growth of 38%. The company’s association with major AI stakeholders like Nvidia solidifies its growth trajectory.
Although economic pressures related to the trade war could affect Micron, the ongoing AI expansion suggests a sustained demand for its products. Currently, Micron trades at a price-to-earnings ratio of just 10. If the company meets analysts’ forecasts—predicting an adjusted EPS of $11.08 for the next fiscal year—the stock could see impressive gains.
Investment Considerations for Micron Technology
Before investing in Micron Technology, it’s essential to consider:
The Motley Fool Stock Advisor team has identified what they consider the 10 best stocks to buy, excluding Micron. Stocks on this list could yield substantial returns in the forthcoming years.
For instance, consider Netflix’s inclusion in December 2004… a $1,000 investment at that time would be worth $524,747!*
Similarly, Nvidia made the list on April 15, 2005… if you invested $1,000, you’d have $622,041!*
Currently, Stock Advisor boasts a total average return of 792%, significantly outperforming the 153% return of the S&P 500. Join Stock Advisor today to access the latest top 10 list.
See the 10 stocks »
*Stock Advisor returns as of April 14, 2025
Jeremy Bowman holds positions in Micron Technology, Nvidia, and Target. The Motley Fool also holds positions in and recommends Nvidia and Target. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
