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Why Target (TGT) Dipped More Than Broader Market Today
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Target (TGT - Free Report) closed the most recent trading day at $156.43, moving -1.26% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the retailer had lost 1.52% in the past month. In that same time, the Retail-Wholesale sector lost 6.36%, while the S&P 500 lost 0.24%.
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 $2.05, reflecting a 15.17% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.39 billion, up 4.42% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.43 per share and revenue of $110.11 billion, indicating changes of +37.78% and +5.09%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.61% higher within the past month. As of now, Target holds a Zacks Rank of #2 (Buy).
Investors should also note Target's current valuation metrics, including its Forward P/E ratio of 15.19. For comparison, its industry has an average Forward P/E of 22.36, which means Target is trading at a discount to the group.
We can also see that TGT currently has a PEG ratio of 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Target (TGT) Dipped More Than Broader Market Today
Target (TGT - Free Report) closed the most recent trading day at $156.43, moving -1.26% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the retailer had lost 1.52% in the past month. In that same time, the Retail-Wholesale sector lost 6.36%, while the S&P 500 lost 0.24%.
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 $2.05, reflecting a 15.17% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.39 billion, up 4.42% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.43 per share and revenue of $110.11 billion, indicating changes of +37.78% and +5.09%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.61% higher within the past month. As of now, Target holds a Zacks Rank of #2 (Buy).
Investors should also note Target's current valuation metrics, including its Forward P/E ratio of 15.19. For comparison, its industry has an average Forward P/E of 22.36, which means Target is trading at a discount to the group.
We can also see that TGT currently has a PEG ratio of 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 27, positioning it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.