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The new tariffs will heavily penalize goods imported from Asia, where retail giants like Target source their products.
Heres what investing expertsthink about buying the dip.
Target is a company that has a solid foundation and reputation in the U.S. Target has faced and weathered many economic headwinds, including trade wars, inflation and even recessions.
No one knows how long that could be, though.
Investors willing to bet on Targetsability to weather the economic stormscould see this dip as a long-term buying opportunity.
The stocks valuation is currently dirt cheap, trading at a forward P/E ratio of 10.76.
This is a relatively low multiple compared with what it averaged in the last five years.
At such a modest multiple, Target stock could give long-term investors a more compelling reason to buy.
Target is a Dividend King, which means it has increased its dividend for at least 50 years consecutively.
Its current quarterly dividend is $1.12 per share.
While Target isnt a growth stock with the current Trump tariffs, it could be an excellent dividend pick.
However, retail stocks like Target are feeling the pinch even more.
The reason why prices are down is the uncertainty.
Ultimately, this puts pressure on costs, which could lead to price increases across their goods.
In return, it could negatively impact revenue and profit margins, ultimately hurting stock prices.
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