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

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In the latest trading session, Target Hospitality (TH - Free Report) closed at $12.43, marking a +0.24% move from the previous day. This move lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Heading into today, shares of the company had gained 103.95% over the past month, outpacing the Consumer Discretionary sector's gain of 8.35% and the S&P 500's gain of 7.91% in that time.

Target Hospitality will be looking to display strength as it nears its next earnings release. On that day, Target Hospitality is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 1800%. Meanwhile, our latest consensus estimate is calling for revenue of $104.6 million, up 39.49% from the prior-year quarter.

TH's full-year Zacks Consensus Estimates are calling for earnings of $1.22 per share and revenue of $507.17 million. These results would represent year-over-year changes of +2540% and +74.08%, respectively.

It is also important to note the recent changes to analyst estimates for Target Hospitality. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1116.67% higher. Target Hospitality is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Target Hospitality is currently trading at a Forward P/E ratio of 10.19. This represents a discount compared to its industry's average Forward P/E of 23.52.

Also, we should mention that TH has a PEG ratio of 0.68. 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. TH's industry had an average PEG ratio of 0.96 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 134, putting it in the bottom 47% 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.

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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