Target (TGT) ended the recent trading session at $134.46, demonstrating a -2.51% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 1.21%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Shares of the retailer have depreciated by 2.32% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.27%, and the S&P 500's gain of 0.42%.
Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to go public on August 19, 2026. In that report, analysts expect Target to post earnings of $2.21 per share. This would mark year-over-year growth of 7.8%. Alongside, our most recent consensus estimate is anticipating revenue of $26 billion, indicating a 3.15% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $108.83 billion, which would represent changes of +10.3% and +3.87%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Target. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Target holds a Zacks Rank of #2 (Buy).
In terms of valuation, Target is currently trading at a Forward P/E ratio of 16.51. This expresses a discount compared to the average Forward P/E of 30.07 of its industry.
It's also important to note that TGT currently trades at a PEG ratio of 2.69. 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. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.68.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 22, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Target Corporation (TGT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).