Yield Dividend Stocks That Look Dirt Cheap on 2027 Earnings

Target (TGT) reported a profit beat in Q2 2026, with a $994M tariff refund contributing significantly. Comparable sales grew 3.8%, and the company raised its yearly sales forecast to 5%. Shares have risen 57% YTD. However, the refund is a one-time boost, and some product categories showed weak growth.

After the Supreme Court struck down Trump's tariffs, companies like Walmart, Amazon, and Apple received billions in refunds. Walmart ($2.9B) cut prices on items, Amazon ($600M) absorbed costs, and Apple ($2.2B) plans U.S. reinvestment. Target ($994M) and Home Depot ($730M) also lowered prices. Consumers unlikely to get direct refunds.

Major retailers like Walmart, Target, Home Depot, and Lowe's have received substantial tariff refunds, with Walmart and Target reporting the largest amounts. Walmart has used its $2.9 billion refund to lower prices, while Target has secured $994 million. Home Depot and Lowe's received $730 million and $80 million, respectively. The refunds come from invalidated IEEPA tariffs, with $106.6 billion paid out so far.

Target (TGT) reported fiscal Q2 2027 revenue of $26.5B, up 5.3% YoY, with traffic and digital sales growth. Changes in food layout and Fun101 department drove sales increases. The company lowered prices on 10,000 items and improved inventory management. Target raised its full-year outlook, with net sales growth expected around 5% and adjusted EPS guidance of $9.90-$10.90. TGT stock has surged over 70% in the last 12 months.

Target (TGT) shares dropped 5% after recalling a Halloween costume criticized for resembling racist imagery. The retailer apologized, but investors worry about potential damage to brand trust and traffic recovery. Target's stock had surged 70% this year on turnaround hopes, supported by Q2 comp sales growth of 3.8% and raised full-year net-sales growth outlook to 5%. Investors will monitor traffic, discretionary sales, and digital growth for signs of impact.

Target Corp. (TGT) reported Q2 earnings with adjusted EPS doubling to $4.11, driven partly by a $994M tariff refund. Comparable sales grew 3.8%, digital sales rose 8.7%, and management raised full-year guidance. However, core retail areas like home and apparel still lag, and costs are increasing. Shares trade at a forward P/E of 16.98.