Target (TGT) Stock Sinks As Market Gains: What You Should Know
Target (TGT) closed the most recent trading day at $129.37, moving -0.83% from the previous trading session. This change lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 0.52%.
TGT will be looking to display strength as it nears its next earnings release, which is expected to be August 19, 2020. The company is expected to report EPS of $1.47, down 19.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.62 billion, up 6.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $82.76 billion, which would represent changes of -22.38% and +5.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TGT is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, TGT currently has a Forward P/E ratio of 26.32. Its industry sports an average Forward P/E of 26.32, so we one might conclude that TGT is trading at a no noticeable deviation comparatively.
Investors should also note that TGT has a PEG ratio of 4.35 right now. 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 currently had an average PEG ratio of 4.35 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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