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Target Hospitality (TH) Stock Moves -1.32%: What You Should Know

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In the latest trading session, Target Hospitality (TH - Free Report) closed at $5.98, marking a -1.32% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.01%. Elsewhere, the Dow lost 1.56%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the company had lost 3.81% over the past month, outpacing the Consumer Discretionary sector's loss of 8.19% and the S&P 500's loss of 6.08% in that time.

Target Hospitality will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.03, up 400% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $82.67 million, up 10.24% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.10 per share and revenue of $333.13 million, which would represent changes of +300% and +14.35%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Target Hospitality. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. Target Hospitality is currently a Zacks Rank #3 (Hold).

Investors should also note Target Hospitality's current valuation metrics, including its Forward P/E ratio of 60.6. For comparison, its industry has an average Forward P/E of 12.29, which means Target Hospitality is trading at a premium to the group.

Meanwhile, TH's PEG ratio is currently 4.04. 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. The Leisure and Recreation Services was holding an average PEG ratio of 1.27 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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