Target (TGT) closed at $239.84 in the latest trading session, marking a +1.07% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%.
Coming into today, shares of the retailer had gained 4.49% in the past month. In that same time, the Retail-Wholesale sector gained 3.43%, while the S&P 500 gained 2.17%.
Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. The company is expected to report EPS of $3.27, down 3.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.53 billion, up 6.76% from the prior-year quarter.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $11.83 per share and revenue of $102.11 billion. These results would represent year-over-year changes of +25.58% and +9.13%, respectively.
Investors should also note any recent changes to analyst estimates for TGT. These recent revisions tend to reflect the evolving nature of short-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. 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 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 sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, TGT currently has a Forward P/E ratio of 20.07. Its industry sports an average Forward P/E of 23.33, so we one might conclude that TGT is trading at a discount comparatively.
Also, we should mention that TGT has a PEG ratio of 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 1.86 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Target Corporation (TGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.