Target (TGT) closed at $131.72 in the latest trading session, marking a -0.92% move from the prior day. This move lagged the S&P 500’s daily loss of 0.8%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 1.69%.
Prior to today’s trading, shares of the retailer had gained 11.97% over the past month. This has outpaced the Retail-Wholesale sector’s gain of 2.37% and the S&P 500’s gain of 5.66% in that time.
Investors will be hoping for strength from TGT as it approaches its next earnings release, which is expected to be August 19, 2020. The company is expected to report EPS of $1.47, down 19.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.62 billion, up 6.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.96 per share and revenue of $82.76 billion, which would represent changes of -22.38% and +5.95%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TGT. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TGT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, TGT is currently trading at a Forward P/E ratio of 26.83. Its industry sports an average Forward P/E of 26.83, so we one might conclude that TGT is trading at a no noticeable deviation comparatively.
Also, we should mention that TGT has a PEG ratio of 4.43. 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. The Retail – Discount Stores was holding an average PEG ratio of 4.43 at yesterday’s closing price.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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