After a strong earnings report from Ross Stores and Target, Bill Baruch shares his outlook on the consumer and what it means for the retail sector at large.
The momentum from this report. Now. Now, the CEO did note that some tough comps going for the quarter four that they will have to face after a strong year last year. Stock hasn’t done much all year until this move. It’s basically up 10%, up now up eight. Is this kind of reaffirms my move to target, which we highlighted yesterday.
I’ve been very negative on the consumer avoided it like the plague all year and I kind of waking up to even though I think November December could be a little slow. I’m waking up to the consumer here and I think that we could turn next year to see some of these stocks perform much better than they did. I mean, you bought Target, right?
You recently bought Target. So you’re still making some bets on I think it’s fair to say, maybe the same stratosphere of the consumer. Yes. Yeah. I mean, Target isn’t only the consumer. I’m looking at names in the bottom ten of the 30 stocks that we own. I’m looking at names that what could really double over the next year.
Western Digital is one obviously, where at Target could go. I think Target could be at $200. What about Gap? You don’t want Gap after 30% this morning, he adds. You don’t own gap already. You’re not in there. You can’t go chasing that at this point. But it’s kind of I’m looking at what I’m establishing from a portfolio basis.
You’re not in these big top ten names I own on the bottom ten. Positioning wise, what can really do some heavy lifting for me next year and what can I add into? I would love to be able to add more target. Ross is on my radar right now. I would love to be able to add more Western Digital, which we talked about earlier.
So that’s what I’m looking at. I mean, we have more retail coming next week. We’re going to do that now. We got Lowe’s and Best Buy, Burlington,—