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

Zacks Equity Research

Target (TGT) closed the most recent trading day at $106.82, moving -0.59% from the previous trading session. This change lagged the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.05%.

Coming into today, shares of the retailer had gained 2.63% in the past month. In that same time, the Retail-Wholesale sector gained 2.71%, while the S&P 500 gained 3.85%.

TGT will be looking to display strength as it nears its next earnings release. In that report, analysts expect TGT to post earnings of $1.17 per share. This would mark year-over-year growth of 7.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

It is also important to note the recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% higher. TGT is currently a Zacks Rank #2 (Buy).

In terms of valuation, TGT is currently trading at a Forward P/E ratio of 17.48. This represents a discount compared to its industry's average Forward P/E of 23.19.

Meanwhile, TGT's PEG ratio is currently 2.47. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.32 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 33, 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.

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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