In the latest close session, Target (TGT) was down 3.29% at $117.88. The stock fell short of the S&P 500, which registered a gain of 1.02% for the day. Meanwhile, the Dow gained 0.63%, and the Nasdaq, a tech-heavy index, added 1.23%.
Heading into today, shares of the retailer had gained 3.88% over the past month, outpacing the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 0.63%.
Market participants will be closely following the financial results of Target in its upcoming release. The company is forecasted to report an EPS of $1.34, showcasing a 3.08% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $24.26 billion, indicating a 1.72% upward movement from the same quarter last year.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $8.04 per share and revenue of $106.78 billion. These results would represent year-over-year changes of +6.21% and +1.91%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% higher. Target currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Target is currently trading at a Forward P/E ratio of 15.17. This valuation marks a discount compared to its industry average Forward P/E of 29.61.
We can also see that TGT currently has a PEG ratio of 5.07. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 3.03 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% of all industries, numbering over 250.
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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Target Corporation (TGT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).