Jim Cramer made an interesting call on Target (TGT) this week.
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.
Cramer watched that move and gave viewers a specific piece of advice on CNBC’s “Squawk on the Street.”
He said to let Target come in before buying.
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.
The rest of this article breaks down what he meant, why the quarter mattered, and what could actually create the pullback he is describing.
What Jim Cramer’s “let it come in” call means for Target investors
Cramer’s message was direct. He told viewers, “Let it come in and buy.”
He added that Target is a winner even after a big run. That advice changes how you should think about the stock.
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.
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This quarter gave them that proof, and it shifts Target from a speculative story into a steadier, dividend-paying holding.
The stock has climbed more than 53% in 2026, which is why Cramer advises patience.
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.
How Target’s second-quarter earnings proved the turnaround is real
The quarter gave Cramer his evidence.
Comparable sales rose 3.8%, a clear reversal from the 1.9% decline Target posted a year earlier, according to Target‘s earnings release.
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.
Digital sales grew 8.7%, led by same-day delivery, which jumped more than 25%.
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.
New CEO Michael Fiddelke credited the company’s price cuts.
Target has lowered prices on more than 10,000 items over the past year, CNBC reported, with more reductions planned.
Why the tariff refund makes Target’s earnings look bigger than they are
Target reported earnings of $4.11 per share, more than double the $2.05 it earned a year earlier, according to its SEC filing.
A $994 million pretax tariff refund added $1.65 per share to that total.
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.
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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.
The core business is healthy. The reported figure is simply inflated by a one-time government payment.
Some large investors may trim positions once they separate the real growth from the one-time boost, and that selling could pressure the stock.
What could actually push Target shares lower
Cramer wants a pullback, so it helps to know what might cause one.
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.
If consumers cut back on clothing and home decor later this year, Target’s profit margins could feel the pressure.
The broader economy adds another layer of risk.
U.S. retail sales fell 0.6% in July, the Census Bureau reported, marking the first monthly drop since October 2025.
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.
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.
How Target’s dividend rewards patient buyers
The waiting game comes with a payoff.
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.
Target has also raised its dividend for 54 straight years, which places it among a small group of companies known as Dividend Kings.
For a patient investor, the plan Cramer describes is simple:
- Wait for a dip rather than chasing the post-earnings rally.
- Use the higher yield as income while you hold.
- Treat the stronger traffic and sales trends as your signal that the business is stable.
The dividend turns waiting into a paid strategy rather than lost time.
What still has to happen before Target becomes a clear buy
The bullish case is not finished yet.
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.
Two things need to hold for the story to keep working.
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.
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.
If both trends hold through the back half of 2026, the pullback Cramer wants becomes a genuine buying opportunity rather than a warning sign.