Target shares are down 4.5% in the past five trading sessions and have fallen about 24% on the year.
"Target's been softened, the stock is coming down," TheStreet's founder Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said from the floor of the New York Stock Exchange Tuesday. "That's very good news," he added.
By keeping guidance low and with the stock price falling, expectations stay low. That gives the stock a chance to pop -- rather than plunge -- when the retailer reports earnings. When it comes to retail, under-promise and over-deliver is an important practice, Cramer said.
Target was a former holding in the Action Alerts PLUS, as was Cisco Systems (CSCO - Get Report) , a more recent position. However, Cramer elected to take profits in the stock in order to raise some cash.
More of What's Trending on TheStreet: