Target (TGT) closed the most recent trading day at $69.55, moving +0.35% from the previous trading session. This change outpaced the S&P 500's 0.15% loss on the day. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.42%.
Prior to today's trading, shares of the retailer had lost 20.11% over the past month. This has lagged the Retail-Wholesale sector's loss of 0.44% and the S&P 500's loss of 1.1% in that time.
TGT will be looking to display strength as it nears its next earnings release, which is expected to be March 5, 2019. In that report, analysts expect TGT to post earnings of $1.51 per share. This would mark year-over-year growth of 10.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.13 billion, up 1.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $75.57 billion, which would represent changes of +14.44% and +5.14%, respectively, from the prior year.
Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.08% higher. TGT currently has a Zacks Rank of #3 (Hold).
Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 12.87. This represents a discount compared to its industry's average Forward P/E of 19.29.
Meanwhile, TGT's PEG ratio is currently 2.15. 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 1.52 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.