<\/p>\n
Jim Cramer made an interesting call on Target (TGT) this week.<\/p>\n
The retailer reported fiscal second-quarter earnings on Wednesday, Aug. 19, 2026, and the numbers were strong enough to send shares up more than 5% that morning.<\/p>\n
Cramer watched that move and gave viewers a specific piece of advice on CNBC’s “Squawk on the Street.” <\/p>\n
He said to let Target come in before buying.<\/p>\n
That single sentence carries a lot of meaning for anyone holding Target or thinking about starting a position. It tells you that while Cramer trusts the business, he’s not comfortable with the current entry price.<\/p>\n
The rest of this article breaks down what he meant, why the quarter mattered, and what could actually create the pullback he is describing.<\/p>\n
What Jim Cramer’s “let it come in” call means for Target investors<\/p>\n
Cramer’s message was direct. He told viewers, “Let it come in and buy.” <\/p>\n
He added that Target is a winner even after a big run. That advice changes how you should think about the stock.<\/p>\n
For most of this year, Target was a turnaround bet, and investors were wagering that a new plan would work before the numbers proved it. <\/p>\n
More Retail Stocks:<\/p>\n
BofA sends a warning on Target stock before earnings<\/p>\n
Popular shoe brand’s stock erased $200 billion in market value<\/p>\n
JPMorgan cuts Nike stock to sell on longer turnaround<\/p>\n
This quarter gave them that proof, and it shifts Target from a speculative story into a steadier, dividend-paying holding.<\/p>\n
The stock has climbed more than 53% in 2026, which is why Cramer advises patience.<\/p>\n
Buying after a sharp rally raises your risk if the price dips. Waiting for a lower entry gives you a better starting point and a higher dividend yield on the shares you buy.<\/p>\n
How Target’s second-quarter earnings proved the turnaround is real<\/p>\n
The quarter gave Cramer his evidence.<\/p>\n
Comparable sales rose 3.8%, a clear reversal from the 1.9% decline Target posted a year earlier, according to Target‘s earnings release.<\/p>\n
Traffic did the heavy lifting. The number of visits rose 3.6%, which tells you shoppers are choosing Target again rather than just spending more per trip.<\/p>\n
Digital sales grew 8.7%, led by same-day delivery, which jumped more than 25%.<\/p>\n
All six of Target’s core merchandise categories grew. That matters because it shows the recovery is spread across the store, not driven by one lucky segment.<\/p>\n
New CEO Michael Fiddelke credited the company’s price cuts. <\/p>\n
Target has lowered prices on more than 10,000 items over the past year, CNBC reported, with more reductions planned.<\/p>\n
Target reported a second straight quarter of comparable sales growth as its price-cutting strategy pulled more shoppers into stores.<\/p>\n
Justin Sullivan \/ Getty Images<\/p>\n
Why the tariff refund makes Target’s earnings look bigger than they are<\/p>\n
Target reported earnings of $4.11 per share, more than double the $2.05 it earned a year earlier, according to its SEC filing.<\/p>\n
A $994 million pretax tariff refund added $1.65 per share to that total. <\/p>\n
Target received the payment after the U.S. Supreme Court ruled earlier this year that the tariffs behind it had been imposed without proper legal authority.<\/p>\n
Related: Albertsons stock in hot water after sobering reveal<\/p>\n
Strip out that one-time payment and adjusted earnings were $2.46 per share, which is still a gain of about 20% from last year.<\/p>\n
The core business is healthy. The reported figure is simply inflated by a one-time government payment.<\/p>\n
Some large investors may trim positions once they separate the real growth from the one-time boost, and that selling could pressure the stock.<\/p>\n
What could actually push Target shares lower<\/p>\n
Cramer wants a pullback, so it helps to know what might cause one.<\/p>\n
Two categories inside Target remain weak. Apparel and home goods lagged the rest of the store, and both carry higher margins than food and essentials.<\/p>\n
If consumers cut back on clothing and home decor later this year, Target’s profit margins could feel the pressure.<\/p>\n
The broader economy adds another layer of risk. <\/p>\n
U.S. retail sales fell 0.6% in July, the Census Bureau reported, marking the first monthly drop since October 2025.<\/p>\n
At the same time, the 30-year Treasury yield climbed to about 5.31% in mid-August, its highest level since 2007, according to CNBC.<\/p>\n
Higher yields often pull money out of stocks. If that pressure spreads, Target could get dragged down with the market, even though its own results are solid.<\/p>\n
How Target’s dividend rewards patient buyers<\/p>\n
The waiting game comes with a payoff.<\/p>\n
Target pays a dividend that yields about 2.9% at the current share price near $159. That yield rises when the stock price falls, so a pullback would let you lock in a slightly higher payout on each share.<\/p>\n
Target has also raised its dividend for 54 straight years, which places it among a small group of companies known as Dividend Kings.<\/p>\n
For a patient investor, the plan Cramer describes is simple:<\/p>\n
Wait for a dip rather than chasing the post-earnings rally.<\/p>\n
Use the higher yield as income while you hold.<\/p>\n
Treat the stronger traffic and sales trends as your signal that the business is stable.<\/p>\n
The dividend turns waiting into a paid strategy rather than lost time.<\/p>\n
What still has to happen before Target becomes a clear buy<\/p>\n
The bullish case is not finished yet.<\/p>\n
Target raised its full-year outlook, and that guidance sets the bar for the rest of 2026. The company now expects full-year sales growth of about 5% and adjusted earnings of $9.90 to $10.90 per share, according to Benzinga.<\/p>\n
Two things need to hold for the story to keep working.<\/p>\n
Traffic must stay positive. Rising visits are the clearest proof that price cuts are pulling shoppers back, and a reversal would undercut the whole call.<\/p>\n
Apparel and home also need to recover. Fiddelke said the home category is a multiyear project, so investors should expect slow progress there rather than a quick fix.<\/p>\n
If both trends hold through the back half of 2026, the pullback Cramer wants becomes a genuine buying opportunity rather than a warning sign.<\/p>\n
Related: Kroger stock slide reveals bigger grocery problem<\/p>\n
#Jim #Cramer #reveals #sweet #spot #buying #Target #stock<\/p>\n","protected":false},"excerpt":{"rendered":"
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