Target (TGT) closed the most recent trading day at $156.41, moving -0.35% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Prior to today's trading, shares of the retailer had lost 4.05% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.44% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from Target as it approaches its next earnings release. The company is expected to report EPS of $2.14, down 29.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $26.37 billion, up 2.81% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.11 per share and revenue of $109.8 billion. These totals would mark changes of -40.19% and +3.58%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Target. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.08% lower within the past month. Target currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Target is currently trading at a Forward P/E ratio of 19.36. This valuation marks a discount compared to its industry's average Forward P/E of 21.2.
Meanwhile, TGT's PEG ratio is currently 1.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.98 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 215, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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