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

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Target Hospitality (TH - Free Report) closed at $7.40 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 2.99%. Meanwhile, the Dow gained 2.81%, and the Nasdaq, a tech-heavy index, added 0.13%.

Heading into today, shares of the company had gained 27.17% over the past month, outpacing the Consumer Discretionary sector's loss of 13.08% and the S&P 500's loss of 8.06% in that time.

Wall Street will be looking for positivity from Target Hospitality as it approaches its next earnings report date. On that day, Target Hospitality is projected to report earnings of $0.01 per share, which would represent year-over-year growth of 107.14%. Our most recent consensus estimate is calling for quarterly revenue of $79.77 million, up 75.35% from the year-ago period.

TH's full-year Zacks Consensus Estimates are calling for earnings of $0.09 per share and revenue of $332.13 million. These results would represent year-over-year changes of +280% and +14%, respectively.

Any recent changes to analyst estimates for Target Hospitality should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Target Hospitality is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, Target Hospitality is holding a Forward P/E ratio of 80.25. For comparison, its industry has an average Forward P/E of 20.1, which means Target Hospitality is trading at a premium to the group.

Meanwhile, TH's PEG ratio is currently 5.35. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.

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

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