The most recent trading session ended with Target (TGT) standing at $149.19, reflecting a -1.14% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.05% loss on the day. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Shares of the retailer have depreciated by 2.82% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76%.
The investment community will be paying close attention to the earnings performance of Target in its upcoming release. It is anticipated that the company will report an EPS of $2.28, marking an 8.57% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.97 billion, showing a 2.24% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.53 per share and revenue of $106.83 billion, indicating changes of +6.6% and -0.54%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Target. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Right now, Target possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 15.83. This indicates a discount in contrast to its industry's Forward P/E of 20.56.
Investors should also note that TGT has a PEG ratio of 1.95 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TGT's industry had an average PEG ratio of 2.39 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 100, which puts it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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