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Target (TGT) Stock Sinks As Market Gains: What You Should Know

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Target (TGT) closed the most recent trading day at $157.49, moving -0.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.06%.

Prior to today's trading, shares of the retailer had gained 4.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.19% and the S&P 500's gain of 5.55% in that time.

Wall Street will be looking for positivity from Target as it approaches its next earnings report date. This is expected to be August 17, 2022. In that report, analysts expect Target to post earnings of $0.74 per share. This would mark a year-over-year decline of 79.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.18 billion, up 4.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.70 per share and revenue of $110.24 billion. These totals would mark changes of -35.84% and +4%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Target. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Target currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, Target currently has a Forward P/E ratio of 18.13. This valuation marks a discount compared to its industry's average Forward P/E of 21.11.

It is also worth noting that TGT currently has a PEG ratio of 1.77. 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. TGT's industry had an average PEG ratio of 1.79 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 156, which puts it in the bottom 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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