Target (TGT) Gains As Market Dips: What You Should Know
Target (TGT) closed at $149.36 in the latest trading session, marking a +1.83% move from the prior day. This change outpaced the S&P 500's 0.84% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Heading into today, shares of the retailer had gained 5.29% over the past month, outpacing the Retail-Wholesale sector's gain of 3.28% and the S&P 500's gain of 2.02% in that time.
Wall Street will be looking for positivity from Target as it approaches its next earnings report date. This is expected to be August 17, 2022. The company is expected to report EPS of $0.74, down 79.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.18 billion, up 4.06% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.70 per share and revenue of $110.24 billion, which would represent changes of -35.84% and +4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Target. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 has moved 0.03% higher. Target is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Target is holding a Forward P/E ratio of 16.86. This represents a discount compared to its industry's average Forward P/E of 20.61.
Also, we should mention that TGT has a PEG ratio of 1.64. 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 1.75 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 178, which puts it in the bottom 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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