For Target Stock, Improving Margins Could Be a Key Driver

Could Target Stock Outperform Walmart and Costco This Year? One thing that’s hurting Target (TGT) stock is the company’s continuously subdued underperformance. Higher digital investments and online order fulfillment expenses have further pressured retailers’ margins, especially Target’s and Walmart’s (WMT). As shown in the graph below, Target’s margins have stayed narrow over the past several quarters, limited by lower pricing and higher digital fulfillment costs.