Target stock is on fire in April. Here's why.
Target stock is on fire in April. Here's why.
Brian SozziMon, April 20, 2026 at 9:09 PM UTC
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Target's (TGT) financial performance for the past two years has been abysmal.
But its stock is up 8% in April compared to a 3.3% gain for rival Walmart (WMT), and that relative outperformance has caught my attention.
Here's why Target's stock has come alive: A new note from Goldman Sachs retail analyst Kate McShane helps to explain the newfound optimism on Target.
"During our recent store checks, we have noticed a few in-store changes, including an baby area and larger Threshold display. Per management, these are some of the bigger changes, particularly in baby, while in 2Q, we should expect to see more changes in home, primarily from an assortment perspective, along with some Threshold shop-in-shops," McShane said.
"Management explained that each week and quarter, the customer should feel the level of newness and change turn up slightly, noting there will not be one month where the store feels completely different."
Put simply, Target under new CEO Michael Fiddelke is trying to better cater to its customers' needs, creating easier-to-shop stores and lowering prices. The Street appears to be banking on a slow sales recovery for Target as the year stretches on.
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Don't forget, it has been woeful though: Target's holiday season was awful, a culmination of its heavy exposure to discretionary items and shoppers viewing its merchandise as too expensive.
Not helping matters was lingering consumer angst on how Target management has handled highly publicized social issues. The retailer notched a fourth straight quarter of falling customer transactions (aka traffic). Comparable sales fell 2.5%. Walmart US saw a comp gain of 4.6%.
For the full year 2025, Target's net sales fell 1.7% to $104.8 billion, down from $106.6 billion in 2024. The decline was more pronounced in profitability, as operating income dropped 8.1% to $5.1 billion.
What the Street is doing: Analysts have aggressively marked up their earnings estimates on Target this year and next as they bet on a turnaround, per Yahoo Finance data.
Bottom line: Target will enter its late May earnings release with much higher expectations around its comeback, in large part because of the stock's run-up. Target has done very little financially or operationally to justify these lofty expectations. There could be a reality check in store for the new crop of Target bulls if the retailer misses the mark.
Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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