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Target (TGT) closed the most recent trading day at $188.59, moving +1.88% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 1.23%.
TGT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.43, up 43.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $27.51 billion, up 17.59% from the year-ago period.
Investors should also note any recent changes to analyst estimates for TGT. Recent revisions tend to reflect the latest near-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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.52% higher. TGT currently has a Zacks Rank of #2 (Buy).
Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 21.28. This represents a discount compared to its industry's average Forward P/E of 23.35.
It is also worth noting that TGT currently has a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TGT's industry had an average PEG ratio of 2.47 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% 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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