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

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Target (TGT - Free Report) closed at $221.40 in the latest trading session, marking a -1.96% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.56%, and the tech-heavy Nasdaq lost 4.81%.

Coming into today, shares of the retailer had lost 0.86% in the past month. In that same time, the Retail-Wholesale sector lost 4.47%, while the S&P 500 gained 0.64%.

Target will be looking to display strength as it nears its next earnings release. In that report, analysts expect Target to post earnings of $2.85 per share. This would mark year-over-year growth of 6.74%. Meanwhile, our latest consensus estimate is calling for revenue of $31.53 billion, up 11.27% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.20 per share and revenue of $106.52 billion, which would represent changes of +40.13% and +13.86%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Target. These revisions help to show the ever-changing nature of near-term business trends. 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. 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 has moved 0.03% higher. Target is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Target is holding a Forward P/E ratio of 16.78. For comparison, its industry has an average Forward P/E of 22.41, which means Target is trading at a discount to the group.

It is also worth noting that TGT currently has a PEG ratio of 1.17. 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 1.93 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 182, which puts it in the bottom 29% 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.

To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.


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