Target (TGT) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Target (TGT) closed at $158.35 in the latest trading session, marking a +0.2% move from the prior day. The stock lagged the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq appreciated by 1.19%.

Shares of the retailer have depreciated by 7.99% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.23% and the S&P 500's loss of 1.57%.

The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. The company is scheduled to release its earnings on May 22, 2024. In that report, analysts expect Target to post earnings of $2.02 per share. This would mark a year-over-year decline of 1.46%. In the meantime, our current consensus estimate forecasts the revenue to be $24.49 billion, indicating a 3.29% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.39 per share and a revenue of $106.62 billion, representing changes of +5.03% and -0.74%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Target. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Target is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Target is holding a Forward P/E ratio of 16.83. For comparison, its industry has an average Forward P/E of 20.56, which means Target is trading at a discount to the group.

It's also important to note that TGT currently trades at a PEG ratio of 1.48. 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 was holding an average PEG ratio of 1.86 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 50, putting it in the top 20% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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