1 Reason Target Stock Is Worth a Second Look This Month
Key Points
Target raised its full-year outlook, signaling confidence in its turnaround strategy.
A recent controversy with a Halloween costume was another unforced error in Target's efforts to lure back customers.
Target's stock has risen about 65% year to date.
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Investors have written off Target (NYSE: TGT) over the last few years as sales stumbled and reputational damage has taken its toll. But the retail giant's comeback is well underway, and there is one reason in particular that Target is worth a second look this month.
What's got investors talking is that Target raised its full-year outlook, and the comeback is in full swing as we head into the holiday shopping season. The guidance raise is significant for a few reasons.
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First, it shows that the company is confident its turnaround is not only taking hold, but picking up steam. Second, Target anticipates net sales growth of around 5%, which is an entire percentage point higher than the previous guidance. Lastly, Target is trading at a very reasonable price right now, especially compared to its longer-term history.
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What Target can't afford at the moment is more missteps. A highly controversial Halloween costume was recently pulled from shelves, leading to more calls to boycott. The easily avoidable mistakes need to stop if Target wants to bring back customers for good.
Ultimately, Target's turnaround is for real, and you can see it in its latest numbers. The stock hasn't quite caught up yet, which is why Target is worth a closer look this month.
Target's stock has risen about 65% thus far in 2026, but is still down more than 34% over the past five years. As we approach the holiday shopping season, Target has a real opportunity to climb back to its previous peak. It just can't afford any more face-palm trip-ups.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.
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