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Target (TGT) Gains But Lags Market: What You Should Know

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·3 min read
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In the latest trading session, Target (TGT) closed at $211.16, marking a +1.22% move from the previous day. This change lagged the S&P 500's 1.49% gain on the day.

Coming into today, shares of the retailer had gained 1.39% in the past month. In that same time, the Retail-Wholesale sector lost 5.6%, while the S&P 500 lost 0.62%.

TGT will be looking to display strength as it nears its next earnings release, which is expected to be May 19, 2021. The company is expected to report EPS of $2.11, up 257.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.51 billion, up 9.64% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $8.71 per share and revenue of $92.16 billion. These results would represent year-over-year changes of -7.54% and -1.5%, respectively.

Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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.

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. The Zacks Consensus EPS estimate has moved 1.18% higher within the past month. TGT currently has a Zacks Rank of #2 (Buy).

Digging into valuation, TGT currently has a Forward P/E ratio of 23.96. This represents a discount compared to its industry's average Forward P/E of 26.95.

We can also see that TGT currently has a PEG ratio of 2.35. 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. TGT's industry 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 172, putting 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.

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


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