Target (TGT) closed the most recent trading day at $101.74, moving -2.27% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.17%.
The stock of retailer has risen by 6.85% in the past month, leading the Retail-Wholesale sector's gain of 4.91% and the S&P 500's gain of 0.78%.
Market participants will be closely following the financial results of Target in its upcoming release. It is anticipated that the company will report an EPS of $2.16, marking a 10.37% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $30.56 billion, down 1.14% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.3 per share and revenue of $104.89 billion, indicating changes of -17.61% and -1.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Target is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Target's current valuation metrics, including its Forward P/E ratio of 14.27. This expresses a discount compared to the average Forward P/E of 28.76 of its industry.
We can also see that TGT currently has a PEG ratio of 11.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TGT's industry had an average PEG ratio of 3.1 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 15, which puts it in the top 7% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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