Back to top

Image: Bigstock

Why Target (TGT) Could Be a Top Value Stock Pick

Read MoreHide Full Article

Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?

Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; Target Corporation (TGT - Free Report) .

Target in Focus

TGT may be an interesting play thanks to its forward PE of 19.6, its P/S ratio of 0.82, and its decent dividend yield of 2.1%. These factors suggest that Target is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that TGT has decent revenue metrics to back up its earnings.

Target Corporation PS Ratio (TTM)

But before you think that Target is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by 3.7% in the past 30 days, thanks to 12 upward revisions in the past one month compared to none lower.

This estimate strength is actually enough to push TGT to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.

So really, Target is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Target Corporation (TGT) - free report >>