Why Target stock is hovering near a 52-week low before Black Friday-awdailynews

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2025-11-03

Why Target stock is hovering near a 52-week low before Black Friday

Santa has already left Target (TGT) a gigantic piece of black coal for its holiday quarter.

Target stock hit a 52-week low of $85.53 on Oct. 10, with only a modest rally since, while broader markets push to record highs. The stock is down 31% year to date, badly lagging the S&P 500’s 16% gain and rival Walmart’s (WMT) 12% increase.

The stock has tanked 41% from its high on Nov. 18, 2024.

There is a host of reasons for Target’s stock price troubles.

Its execution in its stores — from pricing versus Walmart to fresh food in stock — has been horrendous for more than a year. That shows in financial results and leaves little confidence in a turnaround.

Walmart continues to trounce Target in every category. Store sales growth. Online sales growth. Profit margin expansion. Guidance.

Walmart US sales in the second quarter increased 4.6% compared to a 1.9% drop for Target. Online sales for Walmart increased by 26% versus 4.3% for Target. And Target only reiterated its full-year outlook in August when Walmart lifted its projections.

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Another factor is a lack of confidence in the company’s next CEO.

The big box retailer announced in August that longtime CEO Brian Cornell’s heavily groomed No. 2, Michael Fiddelke, will take over as CEO on Feb. 1, 2026. Cornell, who has been CEO of Target since August 2014, will slide into the executive chair position. Fiddelke joined Target in 2003 as an intern and rose through the ranks to CFO and then COO.

Fiddelke will have to move quickly to fix several problems to compete with Walmart, grocery chains, and Amazon (AMZN). Chief among them is to run a more operationally sound business in stores and online.

“Target needs a kick in the ass,” retail expert and investor Jeff Macke told me on Opening Bid.

The Fiddelke pick has been knocked for being a part of the team that has driven weak Target results. He moved to send a signal that he was no Cornell a few weeks ago by announcing Target would cut 1,800 roles across the company.

“The 8% corporate workforce cut is the first major reduction in a decade and signals a clear pivot toward SG&A [expense] discipline under Fiddelke as incoming CEO,” said loyal Target bull Corey Tarlowe at Jefferies.

Additionally, Target continues to battle through the one-two punch of Trump tariffs and a cautious US consumer. About 50% of its cost of goods sold consists of imported items.

And consumer cautiousness has led to concerning outlooks within the past few weeks from discretionary consumer companies such as Chipotle (CMG).