Key Stats for Target Stock
- YTD Price Change for Target stock: -28%
- $TGT Share Price as of Dec. 26: $99.55
- 52-Week High: $145
- $TGT Stock Price Target: $97
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What Happened?
Target (TGT) stock has had a rough year, falling over 28% while the S&P 500 is up more than 18%. The retailer is dealing with a perfect storm of challenges that have weighed on both sales and investor confidence.
The company’s third quarter results showed comparable sales down 2.7%, driven by continued weakness in discretionary categories like Home and Apparel.
Consumer sentiment is at a three-year low as shoppers worry about jobs, affordability, and the impact of tariffs on prices. On top of that, Target has faced backlash after pulling back on diversity initiatives earlier this year, which led some groups to boycott the retailer.
New CEO Michael Fiddelke, who officially takes over in February, didn’t sugarcoat the situation on the earnings call. “We’re far from satisfied with our current results,” he said, “and we won’t be satisfied until we’re operating at our full potential.”
But here’s the interesting part: Target is making major changes. The company is investing $5 billion in capital next year — $1 billion more than this year — to upgrade stores, add trendier merchandise, and use AI technology to predict what customers want before they even know it themselves.
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What the Market Is Telling Us About Target Stock
Target stock currently trades at a P/E ratio of just 13, down from its 10-year average of 16x. The multiple is significantly cheaper than the S&P 500’s P/E of 31.
The company is forecast to grow adjusted earnings per share from $7.31 in fiscal 2026 to $10 in fiscal 2030, which translates to an annual growth rate of over 8%.
The real question is whether Target can execute on its turnaround plan. Management is making bold moves — cutting 1,800 headquarters jobs to simplify decision-making, investing heavily in store experience, and bringing in AI tools to help merchants spot trends faster.
Categories where Target has already made changes, like toys (up nearly 10%) and sporting goods (up double digits), show that when the company gets the merchandising right, customers respond.
For long-term investors willing to bet on a turnaround, Target stock looks cheap. The company still has strong brand loyalty, one of the nation’s largest loyalty programs, and a same-day delivery service that grew 35% last quarter.
If Fiddelke can deliver on his promise to “get back to growth,” today’s price could look like a bargain a year from now.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
