In the latest trading session, Target (TGT) closed at $71.70, marking a -0.58% move from the previous day. This change lagged the S&P 500’s daily loss of 0.15%. At the same time, the Dow added 0.21%, and the tech-heavy Nasdaq lost 0.81%.
Heading into today, shares of the retailer had gained 9.12% over the past month, outpacing the Retail-Wholesale sector’s gain of 8.6% and the S&P 500’s gain of 6.55% 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. On that day, TGT is projected to report earnings of $1.53 per share, which would represent year-over-year growth of 11.68%. Meanwhile, our latest consensus estimate is calling for revenue of $23.15 billion, up 1.67% from the prior-year quarter.
TGT’s full-year Zacks Consensus Estimates are calling for earnings of $5.39 per share and revenue of $75.61 billion. These results would represent year-over-year changes of +14.44% and +5.19%, respectively.
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.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. TGT currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TGT has a Forward P/E ratio of 13.37 right now. For comparison, its industry has an average Forward P/E of 20.04, which means TGT is trading at a discount to the group.
Investors should also note that TGT has a PEG ratio of 2.24 right now. 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 1.57 based on yesterday’s closing prices.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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