Valued at a market cap of $62.6 billion, Target Corporation (TGT) is one of the largest discount retailers in the United States. The Minnesota-based company offers a broad assortment of merchandise across categories including apparel, beauty, home furnishings, electronics, food and beverages, essentials, and household products.
The retail titan is scheduled to announce its fiscal Q2 earnings for 2027 on Wednesday, Aug. 19, before the market opens. Ahead of the release, analysts expect this general merchandise retailer to report a profit of $2,21 per share, up 7.8% from $2.05 per share in the year-ago quarter. The company has topped Wall Street’s bottom-line estimates in three of the last four quarters, while missing on another occasion.
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For the current fiscal year, ending in January 2027, analysts expect TGT to report a profit of $8.35 per share, representing a 10.3% increase from $7.57 per share in fiscal 2026. Furthermore, its EPS is expected to grow 6.5% year over year to $8.89 in fiscal 2028.
www.barchart.com TGT has rallied 25.2% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 16.5% return and the State Street Consumer Staples Select Sector SPDR ETF’s (XLP) 1.9% uptick over the same time period.
www.barchart.com Target has outpaced the broader market over the past year as investors have grown increasingly confident that the retailer's turnaround is gaining traction. A return to positive comparable sales growth, better-than-expected earnings, and improving customer traffic have fueled optimism. Moreover, its 54-year dividend growth streak, attractive yield, and continued investments in store expansion, digital capabilities, and AI have underscored its long-term growth story.
Momentum strengthened on Jun. 23, when Target shares jumped 3.5% after Wolfe Research upgraded the stock to "Outperform" and named it a Top Pick for the remainder of the year. The firm pointed to stronger store execution, improving customer trends, and a brighter earnings outlook. Adding to the bullish sentiment, Target unveiled a new partnership with Hollister just as stronger-than-expected U.S. retail sales reinforced confidence in consumer spending ahead of the back-to-school shopping season.
Wall Street analysts are cautiously upbeat about TGT’s stock, with an overall "Moderate Buy" rating. Among 35 analysts covering the stock, ten recommend "Strong Buy," three indicate "Moderate Buy,” 18 suggest "Hold," one advises a “Moderate Sell,” and three suggest "Strong Sell.” Its mean price target of $135.64 implies marginal upside potential from the current market price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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