Target Stock Plummets: Can New CEO Spark a Comeback?

Target's stock has experienced a substantial downturn, with a one-third loss in 2025 and a near halving over the past five years, reflecting declining same-store sales and issues with merchandising and security. However, the mass-market retailer is setting its sights on a turnaround in 2026 under the guidance of its new CEO, Michael Fiddelke, who assumes the role in February.

Despite growth challenges and recent layoffs, Target's status as a Dividend King, marked by 55 consecutive years of dividend increases, remains a point of interest for income investors, with an current yield of 5%. Analysts anticipate that the company will generate sufficient earnings to support a further dividend hike, potentially increasing the yield if the stock price continues to fall.

The appointment of Fiddelke, a 22-year Target veteran, signals a critical period for the company. While an internal promotion often suggests continuity, Target is expected to implement a robust turnaround strategy. Analysts are cautiously optimistic, forecasting a 2% rise in net sales and a 5% increase in earnings per share for the upcoming fiscal year.