In the latest trading session, Target (TGT) closed at $87.14, marking a -1.32% move from the previous day. This change lagged the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
The retailer's shares have seen a decrease of 9.85% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.
Market participants will be closely following the financial results of Target in its upcoming release. The company is forecasted to report an EPS of $1.8, showcasing a 2.7% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $25.47 billion, showing a 0.78% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.49 per share and a revenue of $105.16 billion, representing changes of -15.46% and -1.32%, respectively, from the prior year.
Any recent changes to analyst estimates for Target should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% lower. Right now, Target possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Target is holding a Forward P/E ratio of 11.8. This expresses a discount compared to the average Forward P/E of 22.31 of its industry.
One should further note that TGT currently holds a PEG ratio of 2.55. 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. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.55.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 102, positioning it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.
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Target Corporation (TGT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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