Target (TGT) closed the most recent trading day at $119.81, moving +0.08% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.1%. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.09%.
TGT will be looking to display strength as it nears its next earnings release. On that day, TGT is projected to report earnings of $1.47 per share, which would represent a year-over-year decline of 19.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.62 billion, up 6.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $82.76 billion, which would represent changes of -22.38% and +5.95%, respectively, from the prior year.
Any recent changes to analyst estimates for TGT should also be noted by investors. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TGT is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, TGT is currently trading at a Forward P/E ratio of 24.16. This represents a no noticeable deviation compared to its industry's average Forward P/E of 24.16.
Also, we should mention that TGT has a PEG ratio of 3.99. 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. TGT's industry had an average PEG ratio of 3.99 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 34, putting it in the top 14% 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.
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