Target (TGT) stock has been struggling in the U.S. stock market, recently hitting one-year lows on the stock charts. Target stock hit a 52-week low of $85.53 on Oct. 10, but has only risen modestly since then, while other retail stocks have risen. The stock price has fallen more than 30% since the beginning of the year, a tough drop in what is a prime trading month.
With Black Friday and the holiday shopping season just around the corner, TGT investors are hoping for a rebound in earnings and stock prices. There are a variety of reasons for Target’s stock woes, but many have to do with the company’s failures compared to rivals like Walmart (WMT) and Amazon (AMZN). Execution rates in stores have been weak for more than a year, from pricing with Walmart to inventory of fresh produce. It’s reflected in the financial results, and there’s little confidence left in a turnaround.
Additionally, Walmart continues to outperform targets in every category, including store sales growth, online sales growth, margin expansion, and guidance. Walmart’s U.S. sales rose 4.6% in the second quarter, while Target’s sales fell 1.9%.
Additionally, Target (TGT) continues to battle the one-two punch of President Trump’s tariffs and wary US consumers. Approximately 50% of the company’s cost of sales consists of imported products. U.S. tariffs have affected hundreds of businesses and businesses in the country, causing price increases on items that are more expensive to import. “We remain cautious about how consumers look as they return to school and have to digest accelerating commodity inflation,” JPMorgan analyst Christopher Horvath said in a note to investors. “Target is experiencing some of the most sudden shopping by the nature of its assortment.”
CNN analysts are less bullish on TGT stock in the short term. At the time of writing, only 28% of the 40 analysts surveyed by the platform indicated they were buying TGT. Alternatively, 18% suggest selling, and 55% hold with caution.
