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Target Hospitality (TH) Stock Sinks As Market Gains: What You Should Know

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Target Hospitality (TH) closed at $6.03 in the latest trading session, marking a -0.99% move from the prior day. This change lagged the S&P 500's 2.45% gain on the day. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.4%.

Prior to today's trading, shares of the company had gained 2.53% over the past month. This has outpaced the Consumer Discretionary sector's loss of 7.23% and the S&P 500's loss of 5.71% 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 $0.03 per share, which would represent year-over-year growth of 400%. Our most recent consensus estimate is calling for quarterly revenue of $82.67 million, up 10.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.10 per share and revenue of $333.13 million, which would represent changes of +300% and +14.35%, respectively, from the prior year.

Any recent changes to analyst estimates for Target Hospitality should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Target Hospitality is currently a Zacks Rank #3 (Hold).

In terms of valuation, Target Hospitality is currently trading at a Forward P/E ratio of 60.9. This represents a premium compared to its industry's average Forward P/E of 11.93.

Meanwhile, TH's PEG ratio is currently 4.06. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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