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Target (TGT) Declines More Than Market: Some Information for Investors

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Target (TGT - Free Report) closed the most recent trading day at $100.57, moving -2.49% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.37% for the day. Meanwhile, the Dow lost 0.74%, and the Nasdaq, a tech-heavy index, lost 0.03%.

Heading into today, shares of the retailer had lost 2.19% over the past month, lagging the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68%.

Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 20, 2025. In that report, analysts expect Target to post earnings of $2.08 per share. This would mark a year-over-year decline of 19.07%. Meanwhile, the latest consensus estimate predicts the revenue to be $24.88 billion, indicating a 2.26% decrease compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.55 per share and revenue of $104.66 billion. These totals would mark changes of -14.79% and -1.79%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Target currently has a Zacks Rank of #4 (Sell).

In the context of valuation, Target is at present trading with a Forward P/E ratio of 13.66. This valuation marks a discount compared to its industry average Forward P/E of 22.04.

It is also worth noting that TGT currently has a PEG ratio of 2.95. 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 2.65 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 168, placing it within the bottom 32% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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