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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuI’ve been a Target shopper through the good times and the bad. But when I dropped my daughter off at college last month, we ended up making four Target runs in one day. No joke. Each time, I noticed the same thing: The product selection and service had noticeably improved. That reinforced what I’ve been seeing in the numbers. I’ve owned Target for a few years, and it hasn’t been an easy ride. But I see a turnaround finally taking hold. The Minneapolis-based retailer, which operates more than 2,000 stores across the U.S. and still has one of the leading retail brands, is heading into the crucial holiday shopping season with some momentum. People are still spending, but they’re increasingly looking for value . That’s exactly where the changes underway can pay off. Key points New CEO has laid out a $6 billion investment plan and reshaped the leadership team. Target is putting more resources into its stores, and early results show improving traffic and sales. Management is investing in marketing and AI to rebuild the brand and give shoppers more reasons to come back. Target has struggled with inconsistent execution and a shopping experience that wasn’t living up to its potential. The stock suffered. Even after its big rally this year, shares remain well below their 2021 high. But now with new leadership, I think Target is getting back to what set it apart from other big-box retailers: combining value and convenience with products that feel a little more stylish and interesting. Why I’m buying A new CEO is shaking things up It all started with the new CEO Michael Fiddelke, who took over in February. But he’s hardly new to Target. In fact, he started as an intern, worked his way up, eventually became CFO, then COO before taking the top job. I like Fiddelke’s plan to invest roughly $6 billion in Target this year. The money is going toward opening and remodeling stores, improving the supply chain, and putting more resources into store employees. Management got a revamp, too. Target named a new COO earlier this year, brought in a new chief supply chain officer in May and recently hired a new chief marketing and guest experience officer. The store experience is getting better This is the part I can see most clearly as a customer. Target is putting more resources where shoppers actually feel them. Part of that $6 billion is going into additional store payroll and training, shifting more focus toward the frontline employees who stock shelves and keep stores running smoothly. This is key because Target’s problems weren’t only about what it was selling. Stores weren’t always well-stocked or well-staffed, which took away from the experience. Comparable sales rose 3.8% last quarter, while traffic increased 3.6%. It means more people are coming through the doors and spending more at Target. Target is investing in its brand again Target underinvested in marketing for years, and that hurt the brand. This is a retailer that was known for convenience and products that felt more interesting than what you’d find at a typical big-box retailer. Now management is increasing brand marketing and getting much clearer about that message. The strategy is centered on trend-forward products, exclusive partnerships, good design and affordable prices. TGT YTD mountain Target, YTD It’s also using technology to make that strategy more effective. Target is investing in AI and personalization to help shoppers discover products that are more relevant to them, and management says some of those tools are already helping drive digital conversion. Why now? Profitability is improving, although the latest quarter got a boost from a sizable tariff refund . But even stripping that out, margins are moving in the right direction. I think Target can earn roughly $9 to $11 per share over the next year to year and a half. The stock is up more than 61% this year as investors have started to recognize the turnaround, but it’s still about 40% below its 2021 high. If earnings continue to improve, I think there’s more room to run. Bottom line One of my favorite ways to invest is finding a great brand that has fallen out of favor, but where new management is making the right moves. That’s happening at Target. Decision-making is improving and management is willing to take some risks. Target is becoming a destination again. Even after the stock’s strong run this year, I think there’s more upside ahead. Stephanie Link is the Chief Investment Strategist at Hightower Advisors, where her division manages $8.5 billion in assets (as of June 4, 2026). She has 35 years of experience managing money and serves on KKR’s investment council. She earned a B.S. in finance from Boston College. Disclosures: Link owns in Hightower Advisors. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. This content is provided as part of our editorial output for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to buy any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above content might not be suitable for your particular circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. 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