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Target (TGT) Gains But Lags Market: What You Should Know

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Target (TGT - Free Report) closed the most recent trading day at $254.57, moving +1.37% from the previous trading session. This move lagged the S&P 500's daily gain of 1.52%.

Heading into today, shares of the retailer had gained 7.42% over the past month, outpacing the Retail-Wholesale sector's loss of 1.17% and the S&P 500's gain of 2.41% in that time.

TGT will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. On that day, TGT is projected to report earnings of $3.36 per share, which would represent a year-over-year decline of 0.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.53 billion, up 6.76% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.10 per share and revenue of $102.11 billion, which would represent changes of +28.45% and +9.13%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for TGT. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. Within the past 30 days, our consensus EPS projection has moved 2.34% higher. TGT is currently a Zacks Rank #2 (Buy).

Digging into valuation, TGT currently has a Forward P/E ratio of 20.75. This represents a discount compared to its industry's average Forward P/E of 23.63.

It is also worth noting that TGT currently has a PEG ratio of 1.56. 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 1.95 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 25, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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