Target (TGT) Surpasses Market Returns: Some Facts Worth Knowing

In the latest close session, Target (TGT) was up +1.46% at $122.21. The stock exceeded the S&P 500, which registered a gain of 0.44% for the day. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.

Prior to today's trading, shares of the retailer had lost 0.28% was narrower than the Retail-Wholesale sector's loss of 2.57% and the S&P 500's loss of 3.31%.

The upcoming earnings release of Target will be of great interest to investors. The company is expected to report EPS of $1.34, up 3.08% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $24.26 billion, reflecting a 1.72% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $8.04 per share and a revenue of $106.78 billion, demonstrating changes of +6.21% and +1.91%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Target. 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 business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.53% higher. Right now, Target possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Target is at present trading with a Forward P/E ratio of 14.99. This indicates a discount in contrast to its industry's Forward P/E of 29.17.

We can additionally observe that TGT currently boasts a PEG ratio of 5.01. 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. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 3.01.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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