Target (TGT) closed at $80.79 in the latest trading session, marking a -0.9% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.98%. Meanwhile, the Dow lost 2.9%, and the Nasdaq, a tech-heavy index, lost 3.47%.
Coming into today, shares of the retailer had lost 7.26% in the past month. In that same time, the Retail-Wholesale sector lost 2.56%, while the S&P 500 lost 1.28%.
TGT will be looking to display strength as it nears its next earnings release, which is expected to be August 21, 2019. The company is expected to report EPS of $1.61, up 9.52% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.33 billion, up 3.12% from the prior-year quarter.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $5.92 per share and revenue of $78.11 billion. These results would represent year-over-year changes of +9.83% and +3.65%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. TGT is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 13.77. This represents a discount compared to its industry's average Forward P/E of 20.67.
Investors should also note that TGT has a PEG ratio of 1.95 right now. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.88 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.
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