In the latest trading session, Target (TGT) closed at $130.24, marking a +1.1% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.46%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 2.03%.
The retailer's stock has climbed by 7.78% in the past month, falling short of the Retail-Wholesale sector's gain of 11.7% and the S&P 500's gain of 10.32%.
Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 20, 2026. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 3.08% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.28 billion, indicating a 1.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $8.02 per share and a revenue of $106.8 billion, demonstrating changes of +5.94% and +1.93%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.18% lower within the past month. Right now, Target possesses a Zacks Rank of #3 (Hold).
Digging into valuation, Target currently has a Forward P/E ratio of 16.06. This indicates a discount in contrast to its industry's Forward P/E of 27.75.
It's also important to note that TGT currently trades at a PEG ratio of 5.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 3.1 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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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.
