In the latest close session, Target (TGT) was up +2.57% at $106.33. The stock outperformed the S&P 500, which registered a daily gain of 0.01%. Meanwhile, the Dow gained 0.55%, and the Nasdaq, a tech-heavy index, lost 0.44%.
The stock of retailer has risen by 9.56% in the past month, leading the Retail-Wholesale sector's gain of 1.61% and the S&P 500's gain of 0.86%.
The investment community will be paying close attention to the earnings performance of Target in its upcoming release. The company's upcoming EPS is projected at $2.16, signifying a 10.37% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $30.53 billion, down 1.23% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.29 per share and a revenue of $104.86 billion, signifying shifts of -17.72% and -1.6%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Target. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Target presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Target is currently exchanging hands at a Forward P/E ratio of 14.21. For comparison, its industry has an average Forward P/E of 28.98, which means Target is trading at a discount to the group.
It is also worth noting that TGT currently has a PEG ratio of 11.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 3.46.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 43, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Target Corporation (TGT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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