Jim Cramer said Target is a buy on any pullback after the retailer’s latest earnings showed its turnaround is gaining momentum. “Let it come in and buy,” Jim said Wednesday on “Squawk on the Street,” referring to Target shares, which have rallied more than 53% this year. “While the stock is up a great deal … we have a winner here.” Shares of Target advanced by more than 5% on Wednesday at the open after the company delivered better-than-expected fiscal second quarter revenue and earnings. Wall Street cheered improving financial metrics across the board. The company’s comparable sales increased 3.8%, a sharp reversal from the 1.9% decline in the year-ago period, marking Target’s second consecutive quarter of positive store comps. Sales growth was driven by increased store traffic and growth in its digital channel. Operating margins were up 440 basis points to 9.6%, well ahead of the consensus of 5.6%. The retailer also mentioned a bottom-line benefit from tariff refunds. In addition, management raised its financial guidance for the rest of the fiscal year. “This is a company that is on the mend,” Jim said, referring to Target’s deteriorating sales over the past few years as the retailer struggled to win over shoppers , resulting in lower store traffic, inventory issues and customer backlash. TGT YTD mountain TGT stock performance YTD. But Jim said the company has seen renewed momentum, “growing faster and faster,” under CEO Michael Fiddelke, who was appointed chief executive in August 2025. “He’s reenergized the company,” Jim said of Fiddelke, a 20-year Target veteran who has held leadership roles across merchandising, finance, operations, and human resources. “I really think Fiddelke has got the place going. I think he’s a very in-touch CEO.” Fiddelke said the second-quarter results “build on the encouraging momentum we saw in Q1, giving us increasing confidence that our strategy is resonating with our guests and strengthening our leadership position in style, design, and value” during the post-earnings webcast. Over the past year, Fiddelke has accelerated Target’s turnaround by reducing prices on more than 10,000 frequently purchased items as price-conscious consumers seek value, while “continuing to invest in newness, convenience, and an elevated shopping experience,” he said. While the current economic landscape of stubbornly elevated inflation is a major challenge for Target and other retailers, Fiddelke is bullish on the retailer’s momentum continuing through the second half of the year. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Jim Cramer says buy Target on any pullback as turnaround takes hold