Target (TGT) closed the most recent trading day at $104.06, moving -1.32% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Shares of the retailer have appreciated by 12.25% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.23%, and the S&P 500's gain of 4.99%.
Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. On that day, Target is projected to report earnings of $2.08 per share, which would represent a year-over-year decline of 19.07%. Our most recent consensus estimate is calling for quarterly revenue of $24.88 billion, down 2.26% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.55 per share and a revenue of $104.65 billion, representing changes of -14.79% and -1.79%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 moved 0.48% higher. Target is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Target is holding a Forward P/E ratio of 13.97. This signifies a discount in comparison to the average Forward P/E of 21.41 for its industry.
It's also important to note that TGT currently trades at a PEG ratio of 3.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.83 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 161, positioning it in the bottom 35% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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