Target (TGT) closed the most recent trading day at $213, moving +0.28% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.82%.
Heading into today, shares of the retailer had gained 3.89% over the past month, outpacing the Retail-Wholesale sector's gain of 1.34% and the S&P 500's gain of 2.31% in that time.
Wall Street will be looking for positivity from TGT as it approaches its next earnings report date. This is expected to be May 19, 2021. The company is expected to report EPS of $2.09, up 254.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.51 billion, up 9.64% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.67 per share and revenue of $92.16 billion, which would represent changes of -7.96% and -1.5%, respectively, from the prior year.
It is also important to note the 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 has moved 0.71% higher within the past month. TGT is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, TGT is holding a Forward P/E ratio of 24.51. For comparison, its industry has an average Forward P/E of 27.44, which means TGT is trading at a discount to the group.
We can also see that TGT currently has a PEG ratio of 2.4. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.4 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 180, which puts it in the bottom 30% 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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