Target (TGT) closed at $126.25 in the latest trading session, marking a -3.04% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.12%.
Shares of the retailer have appreciated by 6.23% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 0.64%, and the S&P 500's loss of 0.9%.
Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.21, indicating a 7.8% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $26 billion, showing a 3.15% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.35 per share and a revenue of $108.83 billion, indicating changes of +10.3% and +3.87%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Target. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Target is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 15.59. This expresses a discount compared to the average Forward P/E of 26.75 of its industry.
We can additionally observe that TGT currently boasts a PEG ratio of 2.54. 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 2.4 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 39, positioning it in the top 16% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).