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Are Investors Undervaluing Target (TGT) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Target (TGT - Free Report) . TGT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.92. This compares to its industry's average Forward P/E of 27.97. TGT's Forward P/E has been as high as 18.70 and as low as 12.31, with a median of 15.02, all within the past year.
Investors will also notice that TGT has a PEG ratio of 1.49. 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. TGT's PEG compares to its industry's average PEG of 2.61. Over the last 12 months, TGT's PEG has been as high as 1.63 and as low as 0.87, with a median of 1.05.
Investors should also recognize that TGT has a P/B ratio of 5.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 13.02. Over the past 12 months, TGT's P/B has been as high as 6.48 and as low as 3.94, with a median of 5.17.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TGT has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.84.
Finally, investors will want to recognize that TGT has a P/CF ratio of 10.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TGT's P/CF compares to its industry's average P/CF of 27.12. Within the past 12 months, TGT's P/CF has been as high as 13.77 and as low as 7.72, with a median of 10.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Target is likely undervalued currently. And when considering the strength of its earnings outlook, TGT sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Target (TGT) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Target (TGT - Free Report) . TGT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 16.92. This compares to its industry's average Forward P/E of 27.97. TGT's Forward P/E has been as high as 18.70 and as low as 12.31, with a median of 15.02, all within the past year.
Investors will also notice that TGT has a PEG ratio of 1.49. 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. TGT's PEG compares to its industry's average PEG of 2.61. Over the last 12 months, TGT's PEG has been as high as 1.63 and as low as 0.87, with a median of 1.05.
Investors should also recognize that TGT has a P/B ratio of 5.63. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 13.02. Over the past 12 months, TGT's P/B has been as high as 6.48 and as low as 3.94, with a median of 5.17.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TGT has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.84.
Finally, investors will want to recognize that TGT has a P/CF ratio of 10.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TGT's P/CF compares to its industry's average P/CF of 27.12. Within the past 12 months, TGT's P/CF has been as high as 13.77 and as low as 7.72, with a median of 10.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Target is likely undervalued currently. And when considering the strength of its earnings outlook, TGT sticks out at as one of the market's strongest value stocks.