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Target (TGT) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Target (TGT - Free Report) closed at $156.62, marking a -0.07% move from the previous day. This change lagged the S&P 500's 2.21% gain on the day. Meanwhile, the Dow gained 1.34%, and the Nasdaq, a tech-heavy index, added 3.86%.

Heading into today, shares of the retailer had lost 1.06% over the past month, lagging the Retail-Wholesale sector's loss of 0.74% and the S&P 500's gain of 0.67% in that time.

Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. This is expected to be November 18, 2020. The company is expected to report EPS of $1.53, up 12.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.68 billion, up 10.77% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.18 per share and revenue of $87.94 billion. These totals would mark changes of +12.36% and +12.58%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. The Zacks Consensus EPS estimate has moved 0.38% higher within the past month. TGT currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TGT has a Forward P/E ratio of 21.83 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.83.

We can also see that TGT currently has a PEG ratio of 3.02. 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 3.02 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 209, which puts it in the bottom 18% 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.

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