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Target (TGT) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Target (TGT) closed at $257.32, marking a -1.43% move from the previous day. This move lagged the S&P 500's daily loss of 0.18%.

Coming into today, shares of the retailer had gained 5.87% in the past month. In that same time, the Retail-Wholesale sector lost 3.25%, while the S&P 500 gained 2.44%.

TGT will be looking to display strength as it nears its next earnings release, which is expected to be August 18, 2021. On that day, TGT is projected to report earnings of $3.37 per share, which would represent a year-over-year decline of 0.3%. Meanwhile, our latest consensus estimate is calling for revenue of $24.55 billion, up 6.83% from the prior-year quarter.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $12.39 per share and revenue of $102.14 billion. These results would represent year-over-year changes of +31.53% and +9.17%, respectively.

Any recent changes to analyst estimates for TGT should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.76% higher. TGT is currently sporting a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TGT has a Forward P/E ratio of 21.07 right now. This represents a discount compared to its industry's average Forward P/E of 24.74.

Also, we should mention that TGT has a PEG ratio of 1.59. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 2.02 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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