Target(NYSE: TGT) stock has been on an epic run. Over the past 12 months, the share price has skyrocketed 79% (as of Sept. 3). This performance is certainly better than anyone could have hoped.

Credit goes to the company's turnaround efforts under CEO Michael Fiddelke, who took over from Brian Cornell in February. Target has improved merchandising, remodeled stores to upgrade the guest experience, and leaned into digital efforts. It has exceeded Wall Street earnings estimates in each of the last four quarters.

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This retail stock currently trades at about $165 per share, a price it hasn't seen since the first half of 2024. But it's still 38% below its peak from November 2021.

Investors might rush to hop on the Target bandwagon. Here's why it's best to pause.

Market sentiment has improved dramatically. Consequently, prospective investors have to deal with a stock price embedded with much higher expectations today.

As of this writing, Target shares sport a price-to-earnings ratio of 17.1. This multiple has risen by 59% in the past year. Shareholders have benefited primarily from valuation expansion.

The good times can continue for Target stock much longer than any rational observer would anticipate. However, I believe there is no longer any margin of safety for investors who are seeking to buy shares right now. It appears as though the easy gains have already occurred.

Should you buy stock in Target right now?

Before you buy stock in Target, consider this:

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