Unsubscribe

A message from Weiss Ratings

Dear Reader,

The first half of 2026 could be very tough for certain stocks …

In fact, our research shows the current volatility is just a preview …

Because what’s coming in 2026 could be much worse.

Specifically, a radical shift is about to hit the market …

And it could send some of America’s most popular stocks crashing down even further.

We’ve identified five stocks you should absolutely avoid as this event plays out …

You’ll want to see this list …

And make sure you don’t own any of these stocks before January 2026 …

Because if you hold on to them — it could mean financial ruin.

To find out more about this incoming market shift …

Including the list of five stocks you must absolutely avoid …

Click here now — before it’s too late.

Sincerely,

Eliza Lasky,
Weiss Advocate

---

Tuesday’s Featured Content

Bullseye Bounce: Toms Capital Takes Target Stake

By Jeffrey Neal Johnson. Date Posted: 12/30/2025. 

Wall Street is always on the hunt for a specific type of story: the turnaround play. These are companies with household names and strong foundations that have temporarily fallen out of favor with the stock market. For investors, these scenarios offer a chance to buy a dollar’s worth of assets for pennies on the dollar. As of late December 2025, Target Corporation (NYSE: TGT) appears to be precisely that kind of opportunity.

Reports confirmed in late December that Toms Capital Investment Management (TCIM), a prominent activist hedge fund, has built a significant stake in the retail sectorplayer. The market’s reaction was swift: Target shares rose about 3.1% immediately after the news, stabilizing in the $97–$99 range. For retail investors, it’s important to understand why this matters. When an activist investor takes a stake, they are not just betting the stock will go up; they intend to make it go up. Activists often demand board seats, strategic changes, or aggressive cost-cutting. Consequently, the arrival of a firm like Toms Capital usually establishes a floor for the stock price — it signals that the period of passive decline is over and a proactive effort to unlock shareholder value has begun.

The Discount Aisle: Why Target Stock is Cheap

To understand the bullish case for Target, investors must first look at how far the stock has fallen. The year 2025 was undeniably difficult for the retailer, with Target’s stock price declining approximately 28% year-to-date, while its primary competitor, Walmart (NASDAQ: WMT), is up about 23%, aided by its dominance in the grocery market. Consumers, squeezed by inflation, pulled back on discretionary purchases like home decor, electronics, and trendy apparel — the very categories where Target earns its highest margins.

Best $19 you’ll spend this year. (Ad)

A former hedge fund manager known for cutting through market noise is briefly opening access to his flagship trading strategy. In a short demo, he explains how his “One Ticker” approach works — and how readers can access the full service for a year at a steep discount.Watch the brief demo here

At a Glance

• The arrival of a prominent activist investor signals a proactive effort to unlock shareholder value through strategic operational improvements.
• Investors can take advantage of a stock trading at a significant discount to the broader market while collecting a reliable and generous dividend.
• Incoming leadership brings deep operational expertise that aligns perfectly with the external push for renewed efficiency and profit growth.

However, this sell-off has created a disconnect between the stock price and the company’s underlying earnings power. Consider the following financial metrics that highlight the value opportunity:

• Price-to-Earnings Ratio (P/E): Target is currently trading at a P/E of roughly 12–13x. This means investors are paying about $12 for every $1 of profit the company generates. By comparison, the broader S&P 500often trades around 20x earnings, and larger peers like Walmart command higher multiples. That gap suggests Target is undervalued relative to the market and many competitors.
• Dividend Yield: Target pays a substantial dividend, currently yielding between 4.6% and 5.0%, which is attractive in the current market environment.
• Dividend King Status: Target has raised its dividend for more than 57 consecutive years. That consistency provides a degree of protection for investors: even if the stock price remains flat in the short term, shareholders can collect nearly a 5% return by holding the shares.

Essentially, the low valuation limits downside risk, while the high dividend pays investors to wait for any turnaround strategies to take effect.

The Fixer: What the Activist Might Demand

The excitement around this news centers on Toms Capital. The firm has a track record of identifying undervalued companies and driving corporate actions that result in meaningful payouts to shareholders. Their approach is rarely passive.

Investors are looking at Toms Capital’s recent wins as a blueprint for what might happen at Target:

• Kellanova: Toms Capital built a position in the snack-food giant shortly before it was sold to Mars for nearly $36 billion.
• Kenvue: The firm was involved with the consumer-health company prior to its reported $48.7 billion acquisition by Kimberly-Clark in November 2025.

While a full buyout of a massive retailer like Target is less likely than with consumer packaged-goods companies, the playbook remains relevant. Toms Capital is expected to press for changes that directly improve the balance sheet. Those could include:

1. Portfolio review: Pressuring Target to sell or spin off underperforming brands or business units.
2. Cost discipline: Demanding deeper cuts to supply-chain expenses than management has previously planned.
3. Real-estate review: Target owns a significant amount of its real estate; activists often push retailers to monetize these assets to generate immediate cash.

The February Pivot: New Leader, New Pressures

The timing of this investment is a critical data point. It coincides with a leadership transition at Target: long-time CEO Brian Cornell is set to retire on January 31, 2026, and Michael Fiddelke — the current Chief Operating Officer and former Chief Financial Officer — will take the reins on February 1, 2026.

Initially, Wall Street viewed Fiddelke’s appointment as a signal of continuity. However, Toms Capital’s entry changes his mandate. He will not have a traditional honeymoon period to adjust slowly.

This combination of an internal CEO and an aggressive external investor could be an ideal scenario for shareholders:

• The operator: Fiddelke knows the business intimately. As a former CFO, he understands the granular details of margins and costs.
• The agitator: Toms Capital provides the external pressure needed to make difficult decisions that long-term insiders might avoid.

Rather than fighting the activist, Fiddelke can use the firm’s presence to accelerate necessary changes, such as simplifying operations or exiting unprofitable product lines. That dynamic creates a powerful check-and-balance focused on boosting the stock price in 2026.

Is This the Bottom? Risk, Reward, and Recovery

Investors must always acknowledge risks. Target still faces a bifurcated consumer base that is spending heavily on groceries but cutting back on high-margin discretionary goods. Additionally, macro risks — for example, potential tariffs on imported goods — could pressure margins in the coming year.

However, successful investing is about weighing risk against reward. With Target trading near multi-year valuation lows, much of the risk is already reflected in the price. The entry of Toms Capital fundamentally alters the equation by introducing a clear catalyst for change that was missing throughout 2025.

The combination of a low P/E ratio, a secure and attractive dividend yield, a new CEO focused on operations, and an activist investor with a history of big wins creates a compelling setup. The activist stake has likely put a floor under the stock, offering investors a rare opportunity to buy a blue-chip retailer at a discount with a catalyst for improvement on the immediate horizon.

Thank you for subscribing to StockReport.com, our daily newsletter that highlights a new stock each day.

This email is a sponsored email sent on behalf of Weiss Ratings, a third-party advertiser of StockReport.com and MarketBeat. 

11780 US Highway 1,
Palm Beach Gardens, FL 33408-3080
Would you like to edit your e-mail notification preferences or unsubscribe[/link] from our mailing list?Copyright © 2025 Weiss Ratings. All rights reserved.
 
 
If you have questions or concerns about your subscription, don’t hesitate to email us at contact@stockreport.com.

If you no longer wish to receive email from StockReport.com, you can unsubscribe.

© 2006-2025 MarketBeat Media, LLC dba StockReport.com. All rights reserved.
345 North Reid Place, Sixth Floor, Sioux Falls, S.D. 57103-7078. U.S.A..