Target Is Up 58% This Year. Here's Why the Dividend King Has a Lot to Prove on Aug. 19.

Target, the well-known retailer known as the "Dividend King," has seen a remarkable 58% increase in its stock price this year. After experiencing disappointing sales and a declining stock performance for several years, investors have begun to see a glimmer of hope for a potential turnaround. In its first fiscal quarter, which concluded in early May, Target reported a 6.7% increase in total revenue compared to the previous year.

This growth can be attributed to a 4.4% rise in foot traffic, leading to a same-store sales growth of 5.6%. While the company's fiscal second-quarter numbers are not expected to match the impressive first-quarter performance, management remains optimistic. In May, Target doubled its previous full-year sales growth guidance, now projecting around 4% growth for the year.

Management is also targeting earnings per share between $7.50 and $8.50 for fiscal 2026, which is set to end in late January. Analysts have a consensus expectation of earnings per share at $8.43 for the same period.