Back to top

Image: Bigstock

Target (TGT) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

Target (TGT - Free Report) ended the recent trading session at $170.17, demonstrating a -0.17% swing from the preceding day's closing price. This change lagged the S&P 500's 0.32% gain on the day. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.

Heading into today, shares of the retailer had gained 14.56% over the past month, outpacing the Retail-Wholesale sector's gain of 5.25% and the S&P 500's gain of 5.11% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.02, reflecting a 1.46% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $24.49 billion, down 3.29% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.39 per share and a revenue of $106.62 billion, signifying shifts of +5.03% and -0.74%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.83% higher. Currently, Target is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Target is currently exchanging hands at a Forward P/E ratio of 18.15. For comparison, its industry has an average Forward P/E of 22.86, which means Target is trading at a discount to the group.

It's also important to note that TGT currently trades at a PEG ratio of 1.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TGT's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 29% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Target Corporation (TGT) - free report >>

Published in