Back to top

Image: Bigstock

Target (TGT) Surpasses Market Returns: Some Facts Worth Knowing

Read MoreHide Full Article

Target (TGT - Free Report) closed the most recent trading day at $151.32, moving +1.56% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.

Coming into today, shares of the retailer had lost 1.06% in the past month. In that same time, the Retail-Wholesale sector gained 7.36%, while the S&P 500 gained 5.41%.

Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. On that day, Target is projected to report earnings of $2.28 per share, which would represent year-over-year growth of 8.57%. Alongside, our most recent consensus estimate is anticipating revenue of $25.97 billion, indicating a 2.24% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.53 per share and revenue of $106.83 billion. These totals would mark changes of +6.6% and -0.54%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Target is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Target currently has a Forward P/E ratio of 15.63. This denotes a discount relative to the industry's average Forward P/E of 19.91.

Meanwhile, TGT's PEG ratio is currently 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TGT's industry had an average PEG ratio of 2.46 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 16% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Target Corporation (TGT) - free report >>

Published in