Back to top

Image: Bigstock

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

Read MoreHide Full Article

Target (TGT - Free Report) closed the most recent trading day at $252.19, moving -0.58% from the previous trading session. This change lagged the S&P 500's 0.74% gain on the day.

Heading into today, shares of the retailer had gained 4.75% over the past month, outpacing the Retail-Wholesale sector's loss of 0.78% and the S&P 500's gain of 1.34% in that time.

Investors will be hoping for strength from TGT as it approaches its next earnings release, which is expected to be November 17, 2021. The company is expected to report EPS of $2.78, down 0.36% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $24.56 billion, up 8.53% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $12.94 per share and revenue of $104.45 billion. These results would represent year-over-year changes of +37.37% and +11.64%, respectively.

Investors should also note any recent changes to analyst estimates for TGT. These revisions help to show the ever-changing nature of 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.

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 remained stagnant. TGT is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, TGT is holding a Forward P/E ratio of 19.61. Its industry sports an average Forward P/E of 21.28, so we one might conclude that TGT is trading at a discount comparatively.

Meanwhile, TGT's PEG ratio is currently 1.41. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TGT's industry had an average PEG ratio of 2.06 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Target Corporation (TGT) - free report >>

Published in