Target stock slipped on Monday, August 17, 2026, as Target investors took profits and remained cautious ahead of the retailer’s second-quarter earnings report. Shares were down about 1.4% at $152.30 during Monday’s session, according to Benzinga Pro data.
Weak Retail Sales Add Pressure
The decline came as investors digested disappointing U.S. retail-sales data. According to data from the U.S. Census Bureau, retail sales fell 0.6% in July to $763.6 billion, missing expectations for a 0.1% increase. It was the biggest monthly decline since May 2025.
The weaker spending figures raised concerns about consumer demand and added pressure to retail stocks. Nonstore retailers saw sales decline 2.2%, while control-group sales, which exclude several volatile categories, fell 0.4%. The broader market was also under pressure Monday, with the S&P 500 and Nasdaq both moving lower.
Investors Await Target Earnings
Target’s upcoming earnings report is now the main focus for investors. The company is expected to provide an update on sales, profits and consumer spending trends when it reports its second-quarter results on Wednesday. Analysts cited by Benzinga expected adjusted earnings of $2.34 per share on sales of about $26.10 billion, with comparable sales growth of 2.5%.
The results will be closely watched as Target continues its turnaround under CEO Michael Fiddelke. The retailer has introduced new product partnerships and other efforts to attract shoppers, while recent financial results have shown signs of improving sales momentum. Target reported 6.7% year-over-year growth in first-quarter net sales and raised its full-year 2026 sales outlook.
Analyst Concerns Remain
Despite the recent recovery, some analysts remain cautious about Target’s valuation and the durability of its improvement. Bank of America Securities maintained an Underperform rating while raising its price target from $110 to $124. The firm expects comparable sales growth to remain around 2% during the second half of the year.
Target’s shares have nevertheless posted a strong gain in 2026, leaving investors with high expectations heading into the earnings announcement. Options-market activity suggested traders were preparing for a potentially large move following the results, making Wednesday’s report an important test of the retailer’s turnaround.
For now, Target stock remains well above its longer-term moving averages, but investors will be watching closely to see whether the earnings report supports the recent rally or triggers another pullback.
Source : benzinga.com
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