Target (TGT) Stock Sinks As Market Gains: What You Should Know
Target (TGT) closed at $123.40 in the latest trading session, marking a -0.32% move from the prior day. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.67%.
Coming into today, shares of the retailer had lost 1.57% in the past month. In that same time, the Retail-Wholesale sector gained 4.11%, while the S&P 500 gained 3.03%.
Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. The company is expected to report EPS of $1.70, up 11.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.95 billion, up 4.24% from the prior-year quarter.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $6.38 per share and revenue of $78.64 billion. These results would represent year-over-year changes of +18.37% and +4.36%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TGT currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that TGT has a Forward P/E ratio of 19.4 right now. For comparison, its industry has an average Forward P/E of 23.14, which means TGT is trading at a discount to the group.
Meanwhile, TGT's PEG ratio is currently 2.57. 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 2.12 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 62, which puts it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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