In the latest trading session, Target (TGT - Free Report) closed at $125.25, marking a +1.11% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the retailer had lost 1.66% over the past month, lagging the Retail-Wholesale sector's gain of 4.58% and the S&P 500's gain of 3.88% in that time.
TGT will be looking to display strength as it nears its next earnings release. On that day, TGT is projected to report earnings of $1.70 per share, which would represent year-over-year growth of 11.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.95 billion, up 4.24% from the year-ago period.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $6.38 per share and revenue of $78.64 billion. These results would represent year-over-year changes of +18.37% and +4.36%, respectively.
Investors might also notice recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TGT is currently a Zacks Rank #2 (Buy).
Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 19.41. Its industry sports an average Forward P/E of 23.47, so we one might conclude that TGT is trading at a discount comparatively.
We can also see that TGT currently has a PEG ratio of 2.57. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.17 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.