In the latest trading session, Target (TGT) closed at $138.22, marking a -0.74% move from the previous day. This change lagged the S&P 500's 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
The retailer's shares have seen an increase of 3.11% over the last month, surpassing the Retail-Wholesale sector's loss of 4.84% and the S&P 500's loss of 2.8%.
Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company is expected to report EPS of $2.14, down 28.19% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $30.38 billion, showing a 4.81% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.60 per share and a revenue of $106.03 billion, signifying shifts of -3.8% and -1.28%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Target possesses a Zacks Rank of #5 (Strong Sell).
Investors should also note Target's current valuation metrics, including its Forward P/E ratio of 16.18. This signifies a discount in comparison to the average Forward P/E of 21.01 for its industry.
Meanwhile, TGT's PEG ratio is currently 2.28. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.39 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
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