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Target (TGT) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Target (TGT) closed at $111.14, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily loss of 0.14%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the retailer had gained 2.65% in the past month. In that same time, the Retail-Wholesale sector lost 1.96%, while the S&P 500 lost 0.91%.

Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. On that day, TGT is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 7.34%. Our most recent consensus estimate is calling for quarterly revenue of $18.47 billion, up 3.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $78.33 billion. These totals would mark changes of +14.1% and +3.95%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TGT. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.41% higher. TGT is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, TGT currently has a Forward P/E ratio of 18.18. Its industry sports an average Forward P/E of 23.69, so we one might conclude that TGT is trading at a discount comparatively.

Investors should also note that TGT has a PEG ratio of 2.57 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.47 based on yesterday's closing prices.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.

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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