In the latest trading session, Target (TGT - Free Report) closed at $71.88, marking a +0.7% move from the previous day. This move lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.
Heading into today, shares of the retailer had lost 16.78% over the past month, lagging the Retail-Wholesale sector's gain of 1.21% and the S&P 500's gain of 1.21% in that time.
Investors will be hoping for strength from TGT as it approaches its next earnings release, which is expected to be March 5, 2019. The company is expected to report EPS of $1.52, up 10.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.13 billion, up 1.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $75.56 billion, which would represent changes of +14.44% and +5.12%, respectively, from the prior year.
Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.22% higher. TGT is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, TGT is currently trading at a Forward P/E ratio of 13.23. Its industry sports an average Forward P/E of 18.67, so we one might conclude that TGT is trading at a discount comparatively.
Meanwhile, TGT's PEG ratio is currently 2.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.