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Target (TGT) Gains As Market Dips: What You Should Know

In the latest trading session, Target (TGT) closed at $123.71, marking a +1.11% move from the previous day. This change outpaced the S&P 500's 0.62% loss on the day. At the same time, the Dow lost 0.69%, and the tech-heavy Nasdaq lost 0.94%.

Prior to today's trading, shares of the retailer had gained 2.12% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.61% and the S&P 500's gain of 3.51% in that time.

Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. The company is expected to report EPS of $1.47, down 19.23% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.62 billion, up 6.49% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $4.96 per share and revenue of $82.76 billion. These results would represent year-over-year changes of -22.38% and +5.95%, respectively.

Any recent changes to analyst estimates for TGT should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TGT is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, TGT is holding a Forward P/E ratio of 24.69. This represents a no noticeable deviation compared to its industry's average Forward P/E of 24.69.

Also, we should mention that TGT has a PEG ratio of 4.08. 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 4.08 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 42, putting it in the top 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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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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