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Target (TGT) Stock Dips While Market Gains: Key Facts

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Target (TGT - Free Report) closed at $135.77 in the latest trading session, marking a -1.14% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.28%.

The the stock of retailer has risen by 3.73% in the past month, leading the Retail-Wholesale sector's gain of 2.32% and the S&P 500's gain of 2.08%.

The investment community will be paying close attention to the earnings performance of Target in its upcoming release. The company is predicted to post an EPS of $2.22, indicating a 25.5% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $30.61 billion, indicating a 4.12% decline compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.68 per share and a revenue of $106.26 billion, signifying shifts of -2.91% and -1.08%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.87% upward. Target is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Target is currently trading at a Forward P/E ratio of 15.82. This denotes a discount relative to the industry's average Forward P/E of 20.63.

We can additionally observe that TGT currently boasts a PEG ratio of 2.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 2.35 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.

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

To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.


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