Should you buy Target stock after Q2 earnings? Jim Cramer answers

Target Corp TGT shares are extending gains on Wednesday morning after the retail giant reported better-than-expected earnings for its second financial quarter (Q2).

And while famed investor Jim Cramer is bullish on TGT, he recommends waiting for a pullback before buying – “I say let it come in and then buy,” he said in a recent segment of CNBC.

Target posted $2.46 a share of earnings (EPS) for its Q2 this morning on $26.54 billion in revenue, attributing part of its quarterly strength to tariff refunds.

Including post-earnings gains, Target stock is up nearly 60% versus the start of this year (2026).

Cramer’s view on Target stock

Jim Cramer credited Target’s strategic transformation to new CEO Michael Fiddelke – saying the executive has effectively “reenergized the company.”

Pointing to key operational execution, he highlighted that Target has aggressively “lowered prices for 10,000 items” while achieving notable market-share gains in core areas like food.

According to the former hedge fund manager, some investors wanted comparable sales to come in a little higher than 3.8%, but the overarching narrative remains intact.

Calling the retailer “a company that’s on the mend,” Cramer expressed fundamental confidence in Fiddelke’s direction, describing him as a “very, very in-touch CEO.”

Note that a solid 2.89% dividend yield on TGT stock makes it even more attractive as a long-term holding.

What else is attractive about TGT shares

Focusing on underlying operational health, Cramer emphasized that store foot traffic is the critical metric separating retail winners from losers.

He noted that Target delivered a 3.6% increase in traffic, contrasting its momentum with peers like Home Depot, which logged price increases without corresponding foot traffic gains.

“Look, we want traffic. We want people to say, 'You know what, I'm done going with Walmart. I want to go to Target,'” Cramer noted – viewing the uptick in store visits as a vital gauge of broader macroeconomic stability.

He dubbed the trend “a sign of consumer health” and said retail winners like Target shares are set to compound gains, advising long-term investors to buy them on the dips.

How Wall Street recommends playing Target

Target’s full-year guidance adds to the list of reasons to have it in your portfolio.

Including tariff refunds, management now expects per-share earnings to come in at $9.9 at least – much higher than $9.5 per share at the higher end of the consensus.

Importantly, CEO Michael Fiddelke said on the earnings call, “Two strong quarters is not the goal. Sustained, durable top- and bottom-line growth over time is what we’re after.”

What’s also worth mentioning is that Wall Street firms currently rate TGT shares at Moderate Buy, with the mean price target of $180 indicating potential upside of more than 12% from here.