Yahoo Finance Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Target (TGT)
Target Corporation has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. The company has been making investment in technologies, improving websites and mobile apps and modernizing supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players. Its acquisition of Shipt to provide same-day delivery of groceries, essentials, home, electronics as well as other products is worth noting.
TGT sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Retail - Discount Stores industry's P/E of 20.9X, shares of Target are trading at a forward P/E of 15.2X. TGT also has a PEG Ratio of 1.3, a Price/Cash Flow ratio of 9.5X, and a Price/Sales ratio of 0.6X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for TGT, while the Zacks Consensus Estimate has increased $0.02 to $9.41 per share. TGT also holds an average earnings surprise of 22.4%.
TGT should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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Target Corporation (TGT) : Free Stock Analysis Report
