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Target (TGT) Rises Higher Than Market: Key Facts

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In the latest market close, Target (TGT - Free Report) reached $135.60, with a +1.07% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

The the stock of retailer has fallen by 3.68% in the past month, lagging the Retail-Wholesale sector's gain of 6.17% and the S&P 500's gain of 1.02%.

The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.23, marking a 25.17% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $30.7 billion, indicating a 3.82% downward movement from the same quarter last year.

Any recent changes to analyst estimates for Target should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.76% increase. Target is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Target is holding a Forward P/E ratio of 14.39. This indicates a discount in contrast to its industry's Forward P/E of 19.54.

Also, we should mention that TGT has a PEG ratio of 2.03. 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 industry had an average PEG ratio of 2.05 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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