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Why Target (TGT) Outpaced the Stock Market Today

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Target (TGT - Free Report) ended the recent trading session at $104.74, demonstrating a +2.26% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.09%.

The stock of retailer has risen by 4.4% in the past month, leading the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37%.

Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.08, showcasing a 19.07% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $24.88 billion, down 2.26% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $104.65 billion. These results would represent year-over-year changes of -14.79% and -1.79%, respectively.

Any recent changes to analyst estimates for Target should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.57% higher. As of now, Target holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Target has a Forward P/E ratio of 13.57 right now. This signifies a discount in comparison to the average Forward P/E of 20.89 for its industry.

Investors should also note that TGT has a PEG ratio of 2.93 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Discount Stores industry had an average PEG ratio of 2.76 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 37% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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