Stock AnalysisFebruary 20, 2026 · 7 min read

Is Target Stock Halal? The Discount Retailer Islamic Screen

Target is one of America's most popular retailers — apparel, electronics, groceries, and home goods under one roof. Like all general retailers, it sells some haram products. Does that disqualify TGT for Muslim investors?

Quick Verdict

Target (TGT) is generally considered NOT COMPLIANT under mainstream Islamic screening. Target sells alcohol, tobacco, and lottery products, and some screening agencies estimate these revenue streams, combined, exceed or approach the 5% threshold that would otherwise allow for minor haram activity.

Target's Revenue Mix

Target is primarily a discretionary and essential goods retailer:

  • Apparel & accessories: ~17% of sales
  • Hardlines (electronics, toys, sporting goods): ~18% of sales
  • Food & beverage: ~23% of sales — includes alcohol
  • Household essentials: ~26% of sales
  • Home furnishings: ~16% of sales

Within the food & beverage segment, alcohol is a meaningful sub-category. Target has expanded its alcohol selection, including premium wines and craft beers.

Financial Screening

  • Debt / Market Cap: ~15% ✅
  • Interest Income / Total Revenue: Under 1% ✅
  • Haram Revenue / Total Revenue: Alcohol + tobacco estimated 3-5% ⚠️

Screening Agencies' Verdict

  • Zoya App — Not Compliant
  • MSCI Islamic Index — Excluded ❌
  • Most halal ETFs — Not held ❌

Bottom Line

Target fails Islamic screening despite being a general merchandise retailer. The combination of alcohol, tobacco, and lottery ticket sales pushes it over or near the acceptable limit for haram revenue. Muslim investors seeking retail sector exposure should look for pure-play e-commerce or specialty retailers with no alcohol exposure.

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