Target (TGT) stock took a sharp hit following the Aug. 20 announcement that long-time Chief Operating Officer Michael Fiddelke, who has been with the company for 20 years, will succeed Brian Cornell as CEO effective Feb. 1, 2026. Shares plunged 6.3% the day of the news. The predominantly negative investor reaction suggests investor skepticism that an internal promotion can deliver the transformational leadership needed to reverse Target’s prolonged sales slumps and operational inefficiencies.
While Fiddelke has outlined a turnaround strategy centered on revitalizing merchandising, improving in-store experience, and accelerating technology deployment, analysts warn that this insider appointment may not possess the “pop” and fresh perspective of an external hire. Given a backdrop of weak comparable-store sales, declining customer sentiment, and stiff competition, should you consider TGT stock as a buy, sell or hold?
Headquartered in Minneapolis, Minnesota, Target is a leading U.S. general merchandise retailer known for offering stylish, high-quality products at affordable prices across nearly 2,000 stores in the United States. The company’s market capitalization stands at approximately $45 billion, placing Target among the world’s leading retailers in terms of valuation.
TGT stock has had a notably rough ride year-to-date (YTD), underperforming the broader benchmarks. Since the start of 2025, shares are down around 27% amid lingering negative sentiments from sluggishness in comparable-store sales, significant cost pressures from tariffs, and underperformance in digital engagement.
The announcement of Fiddelke as Target’s new CEO triggered another wave of selling as markets question whether an internal successor can deliver the strategic reset often associated with external hires. TGT stock is down by 37% over the past 52 weeks.
TGT currently trades at a discount compared to the sector median as well as its own historical average at 12.97 times forward earnings.
Target reported its second-quarter 2025 earnings on Aug. 20, delivering a performance that reflected both modest improvements and ongoing pressures. The company posted net sales of $25.2 billion, marking a marginal year-over-year (YOY) decline, although this represented nearly a two-percentage-point improvement sequentially.
