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

Zacks Equity Research

In the latest trading session, Target (TGT) closed at $104.20, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily gain of 1.45%. Meanwhile, the Dow gained 1.22%, and the Nasdaq, a tech-heavy index, added 0.78%.

Prior to today's trading, shares of the retailer had lost 0.9% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 3.83% and the S&P 500's loss of 7.42% in that time.

TGT will be looking to display strength as it nears its next earnings release. In that report, analysts expect TGT to post earnings of $1.53 per share. This would mark no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.95 billion, up 7.49% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $6.54 per share and revenue of $81.57 billion. These results would represent year-over-year changes of +2.35% and +4.42%, respectively.

Investors might also notice recent changes to analyst estimates for TGT. 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. 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, 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. The Zacks Consensus EPS estimate has moved 4.45% lower within the past month. TGT is currently a Zacks Rank #3 (Hold).

Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 16.01. This represents a discount compared to its industry's average Forward P/E of 22.11.

Investors should also note that TGT has a PEG ratio of 2.04 right now. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.07 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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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