In the latest trading session, Target (TGT) closed at $109.71, marking a +0.63% move from the previous day. This move outpaced the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.01%.
Heading into today, shares of the retailer had gained 2.57% over the past month, outpacing the Retail-Wholesale sector's gain of 0.67% and the S&P 500's gain of 1.38% in that time.
Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. This is expected to be November 20, 2019. On that day, TGT is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 7.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.47 billion, up 3.62% from the year-ago period.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $6.15 per share and revenue of $78.33 billion. These results would represent year-over-year changes of +14.1% and +3.95%, respectively.
It is also important to note the recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.07% higher. TGT is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, TGT currently has a Forward P/E ratio of 17.72. For comparison, its industry has an average Forward P/E of 23.62, which means TGT is trading at a discount to the group.
Also, we should mention that TGT has a PEG ratio of 2.5. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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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