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Here's Why Target (TGT) is a Strong Value Stock

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Target (TGT)

Target Corporation has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. The company has been making investment in technologies, improving websites and mobile apps and modernizing supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players. Its acquisition of Shipt to provide same-day delivery of groceries, essentials, home, electronics as well as other products is worth noting.

TGT is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 17.5X for the current fiscal year compared to the Retail - Discount Stores industry's P/E of 21.2X. Additionally, TGT has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 10.9X. Value investors should also note TGT's Price/Sales ratio of 0.7X.

Many value investors pay close attention to a company's earnings as well. For TGT, 12 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.25 to $9.39 per share for 2025. Per share TGT boasts an average earnings surprise of 27.1%.

Investors should take the time to consider TGT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Target Corporation (TGT) : Free Stock Analysis Report

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Zacks Investment Research