Target (TGT) Dips More Than Broader Market: What You Should Know

Target (TGT) closed at $160.98 in the latest trading session, marking a -1.68% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.57%. On the other hand, the Dow registered a loss of 1.49%, and the technology-centric Nasdaq decreased by 2.04%.

Heading into today, shares of the retailer had lost 7.92% over the past month, lagging the Retail-Wholesale sector's loss of 2.49% and the S&P 500's loss of 2.5% in that time.

Market participants will be closely following the financial results of Target in its upcoming release. The company plans to announce its earnings on May 22, 2024. The company is expected to report EPS of $2.02, down 1.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $24.49 billion, down 3.29% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $9.39 per share and revenue of $106.62 billion, which would represent changes of +5.03% and -0.74%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Target is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Target is presently being traded at a Forward P/E ratio of 17.43. Its industry sports an average Forward P/E of 20.83, so one might conclude that Target is trading at a discount comparatively.

We can also see that TGT currently has a PEG ratio of 1.53. 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 Retail - Discount Stores industry currently had an average PEG ratio of 1.87 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 13% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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