Target (TGT) closed at $111.30 in the latest trading session, marking a +1.62% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.84% for the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
The retailer's stock has climbed by 7.28% in the past month, exceeding the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
Market participants will be closely following the financial results of Target in its upcoming release. In that report, analysts expect Target to post earnings of $2.16 per share. This would mark a year-over-year decline of 10.37%. Our most recent consensus estimate is calling for quarterly revenue of $30.54 billion, down 1.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.3 per share and revenue of $104.87 billion, which would represent changes of -17.61% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Target currently has a Zacks Rank of #3 (Hold).
Investors should also note Target's current valuation metrics, including its Forward P/E ratio of 14.15. This denotes a discount relative to the industry average Forward P/E of 26.71.
It's also important to note that TGT currently trades at a PEG ratio of 11.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores industry currently had an average PEG ratio of 2.87 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 45, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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