Target (TGT) ended the recent trading session at $113.34, demonstrating a -2.87% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 1.04% for the day. Elsewhere, the Dow lost 1.66%, while the tech-heavy Nasdaq lost 1.13%.
The retailer's shares have seen an increase of 7.95% over the last month, surpassing the Retail-Wholesale sector's loss of 3.1% and the S&P 500's gain of 1.75%.
The investment community will be paying close attention to the earnings performance of Target in its upcoming release. The company is slated to reveal its earnings on March 3, 2026. It is anticipated that the company will report an EPS of $2.17, marking a 9.96% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $30.54 billion, indicating a 1.22% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.3 per share and revenue of $104.87 billion. These totals would mark changes of -17.61% and -1.59%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Target. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.3% increase. Currently, Target is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, Target is holding a Forward P/E ratio of 15.03. For comparison, its industry has an average Forward P/E of 28.28, which means Target is trading at a discount to the group.
Also, we should mention that TGT has a PEG ratio of 11.93. 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 average PEG ratio for the Retail - Discount Stores industry stood at 3.02 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
