I need to know if Target is a Blue Chip Stock for a project I am currently doing in an Economics class.
There are a lot of terms that Wall Street uses to describe companies and events. Most of these terms are not taught in school, but are used in real world descriptions.
"Blue Chip
A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.
The name "blue chip" came about because in the game of poker the blue chips have the highest value.
Blue chip stock is seen as a less volatile investment than owning shares in companies without blue chip status because blue chips have an institutional status in the economy. The stock price of a blue chip usually closely follows the S&P 500."
http://www.investopedia.com/terms/b/bluechip.asp
"Blue-chip company
Used in the context of general equities. Large and creditworthy company. Company renowned for the quality and wide acceptance of its products or services, and for its ability to make money and pay dividends."
http://financial-dictionary.thefreedictionary.com/Blue-chip+company
"Blue-Chip Stock
Stock of a well-established and financially sound company that has demonstrated its ability to pay dividends in both good and bad times.
These stocks are usually less risky than other stocks. The stock price of a blue chip usually closely follows the S&P 500."
http://www.investopedia.com/terms/b/bluechipstock.asp
Benefits of Owning Blue Chip Stocks
http://beginnersinvest.about.com/cs/bluechipstocks/a/aabluechipben.htm
Answer: Target would in my opinion meet the definition of a blue chip stock. My definition of a blue chip includes that the stock is not likely to make you rich, nor go broke, hence it is well established.