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Target (TGT) Registers a Bigger Fall Than the Market: Important Facts to Note

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Target (TGT - Free Report) closed the most recent trading day at $108.36, moving -1.68% from the previous trading session. This change lagged the S&P 500's 0.85% loss on the day. Meanwhile, the Dow experienced a drop of 0.75%, and the technology-dominated Nasdaq saw a decrease of 0.96%.

Shares of the retailer have depreciated by 8.47% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 5.44% and the S&P 500's loss of 3.02%.

The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. The company is scheduled to release its earnings on November 15, 2023. On that day, Target is projected to report earnings of $1.48 per share, which would represent a year-over-year decline of 3.9%. At the same time, our most recent consensus estimate is projecting a revenue of $25.32 billion, reflecting a 4.53% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $7.58 per share and a revenue of $107.21 billion, demonstrating changes of +25.91% and -1.75%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Target. Such recent modifications usually signify the changing landscape 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. Target presently features a Zacks Rank of #4 (Sell).

Digging into valuation, Target currently has a Forward P/E ratio of 14.53. This signifies a discount in comparison to the average Forward P/E of 21.49 for its industry.

Investors should also note that TGT has a PEG ratio of 1.15 right now. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.1 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 160, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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