Target (TGT - Free Report) closed the most recent trading day at $88.87, moving +0.26% from the previous trading session. This change outpaced the S&P 500's 0.37% loss on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.91%.
Heading into today, shares of the retailer had gained 7.54% over the past month, outpacing the Retail-Wholesale sector's gain of 4.06% and the S&P 500's gain of 1.96% in that time.
Investors will be hoping for strength from TGT as it approaches its next earnings release, which is expected to be November 21, 2018. On that day, TGT is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 20.88%. Meanwhile, our latest consensus estimate is calling for revenue of $17.75 billion, up 6.5% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.37 per share and revenue of $75.13 billion, which would represent changes of +14.01% and +4.52%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TGT. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.87% higher. TGT currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, TGT is holding a Forward P/E ratio of 16.49. For comparison, its industry has an average Forward P/E of 22.72, which means TGT is trading at a discount to the group.
It is also worth noting that TGT currently has a PEG ratio of 2.45. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.