As the market prepares for Target’s Q2 earnings release on August 19, investors are left wondering what the future holds for TGT stock. While the consensus is for a 12.2% increase in earnings per share (EPS) compared to the same period last year, options traders believe that the stock may not recover following the print.

Options Data Indicates Bearish Sentiment

The put-to-call ratio on contracts expiring at the end of this week is currently set at 1.49x, indicating a bearish reading above 1x. This suggests that options traders are betting on a post-earnings selloff in TGT shares.

According to Barchart’s data, the lower price on those contracts sits at $160 as of writing, signaling potential for a 6% rally through August 21.

Technical Momentum Favors Upside in the Near Term

Despite the bearish options data, Barchart itself holds a ‘100 BUY’ opinion on Target, indicating technical momentum that favors upside in the near term.

This is a promising sign for investors, as it suggests that the stock may continue to move higher in the short term.

Why TGT Shares Remain Attractive

Despite the recent decline, Target stock remains a blockbuster investment for 2026, currently up about 50% versus the start of this year. The stock is also trading at a forward price-to-earnings (P/E) ratio of less than 19x, making it significantly cheaper to own than peer Walmart at about 40x.

Additionally, Target is currently paying a rather healthy 3.07% dividend yield, making it an attractive option for income-seeking investors.

Wall Street Recommends Playing Target

Despite Target’s outsized year-to-date gains, Wall Street analysts believe that the stock could extend its 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.

This is a promising sign for investors, as it suggests that the stock may continue to move higher in the long term.

Investors Should Note the Institutional Confidence in TGT

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.