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Target (TGT) Stock Sinks As Market Gains: What You Should Know

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Target (TGT) closed at $144.81 in the latest trading session, marking a -0.62% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Heading into today, shares of the retailer had lost 6.58% over the past month, lagging the Retail-Wholesale sector's loss of 2.34% and outpacing the S&P 500's loss of 6.59% in that time.

Investors will be hoping for strength from Target as it approaches its next earnings release. On that day, Target is projected to report earnings of $0.73 per share, which would represent a year-over-year decline of 79.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.18 billion, up 4.05% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $8.70 per share and revenue of $110.23 billion. These results would represent year-over-year changes of -35.84% and +3.98%, respectively.

Any recent changes to analyst estimates for Target should also be noted by investors. 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. Over the past month, the Zacks Consensus EPS estimate has moved 21.5% lower. Target is holding a Zacks Rank of #5 (Strong Sell) right now.

Looking at its valuation, Target is holding a Forward P/E ratio of 16.75. This represents a discount compared to its industry's average Forward P/E of 20.23.

Also, we should mention that TGT has a PEG ratio of 1.63. 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 1.73 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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