Target (TGT) closed at $117 in the latest trading session, marking a +1.2% move from the prior day. This move outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 1.13%.
Prior to today's trading, shares of the retailer had lost 6.39% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 2.95% in that time.
TGT will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2020. In that report, analysts expect TGT to post earnings of $1.66 per share. This would mark year-over-year growth of 8.5%. Our most recent consensus estimate is calling for quarterly revenue of $23.59 billion, up 2.65% from the year-ago period.
Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.45% lower within the past month. TGT currently has a Zacks Rank of #3 (Hold).
In terms of valuation, TGT is currently trading at a Forward P/E ratio of 16.92. Its industry sports an average Forward P/E of 21.22, so we one might conclude that TGT is trading at a discount comparatively.
Meanwhile, TGT's PEG ratio is currently 2.24. 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 1.93 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 106, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TGT in the coming trading sessions, be sure to utilize Zacks.com.