#7 - Target (NYSE:TGT)
The last stock on our list may confuse you initially, but allow me to explain. Target (NYSE:TGT) is the parent company of Shipt, a membership-based grocery marketplace, enabling delivery of fresh foods and household essentials in 270 cities throughout the United States. Target acquired Shipt in 2017.
Although Shipt does facilitate same-day deliveries for Target customers, it has allowed Shipt to continue operating as an independent subsidiary. As a result, Shipt has acquired many customers since becoming part of Target. This has spread its national reach.
Grocery delivery was considered to be one of the last obstacles for the wide-spread adoption of e-commerce. However, when many Americans were ordered to stay at home as much as possible, Shipt workers became an essential bridge for consumers to get the items they needed in a timely fashion.
Shipt works on a subscription model, meaning customers have to pay a fee to become a Shipt customer. They can either pay a monthly membership of $14 per month or an annual fee of $99 per year. Members get free delivery on any order of $35 or more. Shipt workers are freelancers and can get paid between $16-$22 per hour, plus tips.
About Target
Target Corporation operates as a general merchandise retailer in the United States. The company offers apparel for women, men, boys, girls, toddlers, and infants and newborns, as well as jewelry, accessories, and shoes; and beauty and personal care, baby gear, cleaning, paper products, and pet supplies.
Read More - Current Price
- $131.48
- Consensus Rating
- Hold
- Ratings Breakdown
- 15 Buy Ratings, 16 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $160.57 (22.1% Upside)
Investing in the gig economy is not without risk. Many of these companies are not profitable. And many of them may be years away from profitability if they arrive there at all.
However, major changes frequently happen while investors are looking somewhere else. Many workers have been talking about work-life balance for quite some time. The has given them a chance to prove that this can be a reality. And many employers see the benefits as well.
The world of cubicle farms and corner offices isn’t going away. But for many workers, 2020 has created a new normal that makes it unlikely they will return to anything approaching what used to be considered business as usual.
And that’s why these gig stocks should be part of your new normal as you consider how to position your portfolio for future growth. To be sure, these stocks are speculative and should only merit a small position in your portfolio. But with valuations stretched for many stocks, you could do worse than invest in the gig economy.
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