Should You Buy Target Stock Before Nov. 19?

• Target has been struggling to generate growth in recent years.

• Challenging economic conditions are weighing on discretionary spending, which is bad for business.

• The stock is trading around multi-year lows.

• 10 stocks we like better than Target ›

There hasn’t been much of a reason for investors to be excited about Target (NYSE: TGT) stock this year. The company’s financials have been underwhelming, and with the business heavily dependent on discretionary spending for its growth, there hasn’t been much hope that things will get better anytime soon, given the state of the economy.

This year, the stock is down more than 30% as it has continued to hit new lows on the way down. But it offers a high-yielding dividend of 5.2% and with an incredibly low valuation, it could make for an intriguing contrarian play. With earnings coming up on Nov. 19, should you consider taking a chance on the retail stock before it posts its latest numbers?

To say things haven’t been going well for Target in recent years is an understatement. Sales have been sluggish and the company has been struggling to generate any kind of growth whatsoever. Consumers have been tightening up their budgets and spending less on discretionary purchases as concerns about tariffs and the economy as a whole have been affecting many retailers.

In the company’s most recent quarter, which ended on Aug. 2, its net sales were down by a little less than 1%, totaling $25.2 billion. And what was even more problematic is that with expenses rising, Target’s net earnings fell by a whopping 22%, to $935 million.

The worry is that retailers haven’t felt the full impact of tariffs just yet, which could mean more bad news for Target’s business in the future. But in a way, that bearish outlook could work to the stock’s advantage.

Target’s stock has been in a prolonged tailspin this year. And if the company doesn’t give investors much reason for optimism in its upcoming earnings report, it could be on track for an even worse year than in 2022, when the stock market crashed and its shares plummeted by 36%.

The retail stock trades at a lowly 10 times its trailing earnings, and even when factoring in analyst expectations, its forward price-to-earnings multiple is not much higher at 11. There’s plenty of bearishness priced into the stock, which could make it easier for Target not to disappoint investors; any bit of positive news could give this beaten-down stock some much-needed life.