Target (TGT) closed at $166.97 in the latest trading session, marking a +0.51% move from the prior day. This change outpaced the S&P 500's 0.12% loss on the day. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.4%.
Prior to today's trading, shares of the retailer had gained 12.26% over the past month. This has outpaced the Retail-Wholesale sector's gain of 9.21% and the S&P 500's gain of 8.25% in that time.
Investors will be hoping for strength from Target as it approaches its next earnings release, which is expected to be August 17, 2022. In that report, analysts expect Target to post earnings of $0.72 per share. This would mark a year-over-year decline of 80.22%. Meanwhile, our latest consensus estimate is calling for revenue of $26.18 billion, up 4.04% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.49 per share and revenue of $110.06 billion. These totals would mark changes of -37.39% and +3.83%, respectively, from last year.
Investors should also note any recent changes 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 has moved 2.37% lower. Target is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Target is currently trading at a Forward P/E ratio of 19.56. For comparison, its industry has an average Forward P/E of 20.25, which means Target is trading at a discount to the group.
Investors should also note that TGT has a PEG ratio of 1.91 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.91 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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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