A year ago in “Across the Street” we spoke with Matthew Norris, Portfolio Manager of Ivy Value (IYVAX). Matthew gave the nod to two stocks priced at a discount but with bright long-term outlooks. Here’s how they’ve fared.

Target Corp’s (NYSE: TGT) expansion into Canada is driving down profits, but that drag is likely to end by the end of 2013. In 2011, Target took over the store leases of ailing Canadian discounter Zellers. And in first-quarter 2013, Target opened 24 new stores up north with 100 more in the offing.

Target’s first-quarter 2013 earnings sank 29 percent, due to essentially flat sales and $238 million in Canadian start-up expenses. The big red retailer’s earnings growth is expected to get back on track by mid-2014.

Target stock is up 27.8 percent since recommended.

Reinsurer RenaissanceRe Holdings (NYSE: RNR), a Bermuda- based catastrophe re-insurer, pleasantly shocked Wall Street recently, as first-quarter 2013 earnings came in at $3.92 per share, 86 cents more than analysts expected. The main driver was lower payouts due to fewer catastrophic losses.

During the quarter, reinsurance premiums fell 8 percent, to $561 million, due to lower rates on a number of new contracts and a $18.2 million decrease in the company’s specialty insurance unit due to the timing of multi-year contracts.

RNR now has excess capital, so it could issue a special dividend after the hurricane season passes and the company re-evaluates its financials.

Last year, RNR earned $8.65 per share; the consensus estimate for 2013 is $10.09 per share.

RenaissanceRe is up 14.9 percent since last year.