Target (TGT – Free Report) closed at $196.82 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500’s 0.23% gain on the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.43%.
Heading into today, shares of the retailer had gained 16.15% over the past month, outpacing the Retail-Wholesale sector’s loss of 0.21% and the S&P 500’s gain of 3.86% in that time.
Investors will be hoping for strength from TGT as it approaches its next earnings release. On that day, TGT is projected to report earnings of $2.08 per share, which would represent year-over-year growth of 23.08%. Our most recent consensus estimate is calling for quarterly revenue of $26.27 billion, up 12.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.78 per share and revenue of $91.04 billion, which would represent changes of +37.4% and +16.55%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TGT. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.38% higher. TGT is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note TGT’s current valuation metrics, including its Forward P/E ratio of 22.68. This represents a no noticeable deviation compared to its industry’s average Forward P/E of 22.68.
Meanwhile, TGT’s PEG ratio is currently 2.67. 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. The Retail – Discount Stores was holding an average PEG ratio of 2.67 at yesterday’s closing price.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.