Minneapolis, Minnesota-based Target Corporation (TGT) operates as a general merchandise retailer, offering apparel, accessories, pet supplies, food and beverage products, appliances, home decor, and more. Valued at nearly $43.6 billion by market cap, Target operates as one of the largest discount retailers in the U.S.

The retailer is expected to announce its first-quarter results before the market opens on Wednesday, May 21. Ahead of the event, analysts expect TGT to report an adjusted EPS of $1.76, down 13.3% from $2.03 reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates twice over the past four quarters, it surpassed the projections on two other occasions.

For the full fiscal 2025, TGT is expected to deliver an adjusted EPS of $8.95, up a modest 1% from $8.86 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 7.5% year-over-year to $9.62 per share.

TGT stock prices have plummeted 41.5% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 8.4% gains and the Consumer Staples Select Sector SPDR Fund’s (XLP) 6.6% returns during the same time frame.

Despite reporting better-than-expected financials, Target’s stock prices declined 3% after the release of its Q4 results on Mar. 4. Driven by notable improvement in toys, electronics, and apparel sales, the company’s comps increased by 1.5% compared to the year-ago quarter. However, Q4 2023 consisted of 14 weeks, one more week compared to Q4 2024 and the extra week produced sales of $1.7 billion. This contributed to its net sales for the quarter declining 3.1% year-over-year to $30.9 billion. Nonetheless, the figure surpassed the Street’s expectations by a small margin. Meanwhile, its adjusted EPS declined 19.1% year-over-year to $2.41, but surpassed the consensus estimates by 7.1%.

Meanwhile, amid the growing economic uncertainties and impact of tariffs on inflation, the company expects its topline to face pressure throughout fiscal 2025. As per Target’s guidance, its comps are expected to remain flat and total revenue growth is expected to come around 1% in fiscal 2025, which unsettled investor confidence.

The consensus view on TGT remains cautiously optimistic, with a “Moderate Buy” rating overall. Of the 35 analysts covering the stock, opinions include 12 “Strong Buys,” two “Moderate Buys,” 20 “Holds,” and one “Strong Sell.” As of writing, the stock is trading significantly below its mean price target of $131.14.