Target (TGT) closed at $106.04 in the latest trading session, marking a -3.02% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.16%. Elsewhere, the Dow saw an upswing of 1.21%, while the tech-heavy Nasdaq appreciated by 1.18%.
The retailer's stock has climbed by 15.95% in the past month, exceeding the Retail-Wholesale sector's gain of 3.08% and the S&P 500's loss of 0.42%.
Market participants will be closely following the financial results of Target in its upcoming release. The company is predicted to post an EPS of $2.16, indicating a 10.37% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $30.56 billion, indicating a 1.14% decrease compared to the same quarter of the previous year.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $7.3 per share and revenue of $104.89 billion. These results would represent year-over-year changes of -17.61% and -1.57%, respectively.
Any recent changes to analyst estimates for Target should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 past month, the Zacks Consensus EPS estimate has moved 0.04% higher. As of now, Target holds a Zacks Rank of #4 (Sell).
In terms of valuation, Target is presently being traded at a Forward P/E ratio of 14.98. This represents a discount compared to its industry average Forward P/E of 29.31.
Investors should also note that TGT has a PEG ratio of 11.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 3.27 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on 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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