In the latest market close, Target (TGT) reached $93.78, with a +0.72% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 2.36%. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.
Heading into today, shares of the retailer had lost 10.52% over the past month, lagging the Retail-Wholesale sector's loss of 4.2% and the S&P 500's loss of 5.6% in that time.
Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. The company is forecasted to report an EPS of $1.76, showcasing a 13.3% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $24.56 billion, up 0.1% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.99 per share and a revenue of $107.49 billion, representing changes of +1.47% and +0.86%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Target. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.04% downward. Target is currently a Zacks Rank #3 (Hold).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 10.35. For comparison, its industry has an average Forward P/E of 21.8, which means Target is trading at a discount to the group.
We can also see that TGT currently has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.62 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% of all 250+ industries.
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.
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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Target Corporation (TGT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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