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Target Hospitality (TH) closed the most recent trading day at $13.70, moving -0.72% from the previous trading session. This change lagged the S&P 500's daily gain of 1.21%. At the same time, the Dow added 1.03%, and the tech-heavy Nasdaq gained 0.16%.
Heading into today, shares of the company had gained 145.55% over the past month, outpacing the Consumer Discretionary sector's gain of 4.05% and the S&P 500's gain of 3.2% in that time.
Target Hospitality will be looking to display strength as it nears its next earnings release. On that day, Target Hospitality is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 1800%. Our most recent consensus estimate is calling for quarterly revenue of $104.6 million, up 39.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.18 per share and revenue of $507.17 million, which would represent changes of +2460% and +74.08%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Target Hospitality. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1083.33% higher within the past month. Target Hospitality is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Target Hospitality is currently trading at a Forward P/E ratio of 11.66. For comparison, its industry has an average Forward P/E of 21.34, which means Target Hospitality is trading at a discount to the group.
Meanwhile, TH's PEG ratio is currently 0.78. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Target Hospitality Corp. (TH) : Free Stock Analysis Report
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