In the latest trading session, Target (TGT) closed at $105.94, marking a -0.91% move from the previous day. This change was narrower than the S&P 500's 1.23% loss on the day. At the same time, the Dow lost 1.28%, and the tech-heavy Nasdaq lost 1.13%.
Heading into today, shares of the retailer had lost 0.12% over the past month, outpacing the Retail-Wholesale sector's loss of 0.49% and lagging the S&P 500's gain of 1.95% in that time.
TGT will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.17, up 7.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.47 billion, up 3.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $78.34 billion. These totals would mark changes of +14.1% and +3.96%, respectively, from last year.
Any recent changes to analyst estimates for TGT should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Within the past 30 days, our consensus EPS projection has moved 0.34% 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 17.39. This valuation marks a discount compared to its industry's average Forward P/E of 23.34.
It is also worth noting that TGT currently has a PEG ratio of 2.46. 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. TGT's industry had an average PEG ratio of 2.35 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 31, which puts it in the top 13% 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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