In the latest trading session, Target (TGT) closed at $119.78, marking a -0.33% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.05%. At the same time, the Dow lost 1.89%, and the tech-heavy Nasdaq lost 2.07%.
Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. This is expected to be May 20, 2020. The company is expected to report EPS of $0.90, down 41.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.77 billion, up 6.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $81.38 billion. These totals would mark changes of -14.4% and +4.18%, respectively, from last year.
Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 16.63% lower. TGT currently has a Zacks Rank of #3 (Hold).
Digging into valuation, TGT currently has a Forward P/E ratio of 21.99. This valuation marks a discount compared to its industry's average Forward P/E of 27.6.
We can also see that TGT currently has a PEG ratio of 2.8. 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 2.86 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 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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