Target (TGT) shares are inching lower ahead of the Q2 earnings scheduled to be released before the market opens on Aug. 19, and options traders believe they’re unlikely to recover following the print.
Consensus is for TGT to record $2.30 in earnings per share (EPS) for its second financial quarter, which would represent a 12.2% increase on a year-over-year basis.
Despite the recent decline, however, Target stock remains a blockbuster investment for 2026, currently up about 50% versus the start of this year.
Options Data Is Bearish Ahead of Target’s Q2 Earnings
The options market is betting on a post-earnings selloff in TGT shares, as evidenced by the put-to-call ratio on contracts expiring at the end of this week, which is set at 1.49x currently. A reading above 1x is often interpreted as bearish.
According to Barchart’s data, the lower price on those contracts sits at $160 as of writing, signaling potential for a 6% rally through Aug. 21.
On the flip side, however, Barchart itself holds a “100 BUY” opinion on Target, indicating technical momentum nonetheless favors upside in the near term.
Why TGT Shares Are Still Somewhat Attractive
D.A. Davidson analysts maintained their “Buy” rating on Target shares heading into the Q2 print and raised their price target to $170, signaling potential upside of about 13% from here.
Additionally, Pzena Investment Management has recently loaded up on nearly $49 million worth of TGT, reinforcing institutional confidence in the retail behemoth’s long-term value.
Investors should also note that Target is currently trading at a forward price-to-earnings (P/E) ratio of less than 19x, which makes it significantly cheaper to own than peer Walmart (WMT) at about 40x.
A rather healthy 3.07% dividend yield on the NYSE-listed giant makes for another compelling reason to have TGT in your investment portfolio.
How Wall Street Recommends Playing Target
Despite Target’s outsized year-to-date gains, Wall Street analysts also believe it could extend gains through the remainder of 2026.
The consensus rating on TGT stock remains at “Moderate Buy,” with price targets as high as $180 indicating potential upside of nearly 20% from here.
On the date of publication, Wajeeh Khan 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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