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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 $132.39 in the latest trading session, marking a -0.62% move from the prior day. This move lagged the S&P 500's daily gain of 0.37%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.

Coming into today, shares of the retailer had lost 6.9% in the past month. In that same time, the Retail-Wholesale sector gained 3.11%, while the S&P 500 gained 4.31%.

Target will be looking to display strength as it nears its next earnings release. In that report, analysts expect Target to post earnings of $1.58 per share. This would mark year-over-year growth of 305.13%. Our most recent consensus estimate is calling for quarterly revenue of $25.73 billion, down 1.19% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.25 per share and revenue of $110.38 billion. These totals would mark changes of +37.04% and +1.16%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Target. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Target currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Target has a Forward P/E ratio of 16.16 right now. For comparison, its industry has an average Forward P/E of 22.69, which means Target is trading at a discount to the group.

Investors should also note that TGT has a PEG ratio of 1.05 right now. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.08 based on yesterday's closing prices.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% 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.

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

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