Minneapolis, Minnesota-based Target Corporation (TGT) operates as a general merchandise retailer, offering apparels, accessories, pet supplies, food and beverage products, appliances, home decor, and more. Valued at nearly $48.4 billion by market cap, Target operates as one of the largest discount retailers in the U.S.

The retailer is expected to announce its second-quarter results on Wednesday, Aug. 20. Ahead of the event, analysts expect TGT to report an adjusted EPS of $2.08, down a significant 19.1% from $2.57 reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates twice over the past four quarters, it surpassed the projections on two other occasions.

For the full fiscal 2025, Target’s EPS is expected to come in at $7.55, down 14.8% from $8.86 reported in fiscal 2024. However, in fiscal 2026, its earnings are expected to rebound nearly 8% year-over-year to $8.15 per share. 

TGT stock prices have plummeted 28.5% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 14.5% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.9% uptick during the same time frame.

Target’s stock prices dropped 5.2% in a single trading session after the release of its Q1 results on May 21. The company’s performance remained underwhelming during the quarter; its comparable sales dropped 3.8% year-over-year. This led to a 2.8% decline in overall net sales to $23.8 billion, falling short of Street expectations. Further, its adjusted EPS plunged 35.9% year-over-year to $1.30, missing the consensus estimates by 19.8%.

The company expects its full-year sales to remain under pressure due to the challenging macro environment. Observing the trend, the company reduced its full-year topline guidance from previous expectations of a positive 1% growth to a low-single-digit drop, which unsettled investor confidence.

The consensus view on TGT remains neutral, with a “Hold” rating overall. Of the 33 analysts covering the stock, opinions include eight “Strong Buys,” three “Moderate Buy,” 19 “Holds,” and three “Strong Sells.” As of writing, the stock is trading marginally above its mean price target of $107.16.