Target (TGT) Stock Sinks As Market Gains: What You Should Know
The latest trading session saw Target (TGT) ending at $96.37, denoting a -0.22% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
The retailer's stock has dropped by 6.82% in the past month, falling short of the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.
Analysts and investors alike will be keeping a close eye on the performance of Target in its upcoming earnings disclosure. The company's earnings report is set to go public on May 21, 2025. The company's earnings per share (EPS) are projected to be $1.76, reflecting a 13.3% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $24.56 billion, indicating a 0.1% growth compared to the corresponding quarter of the prior year.
TGT's full-year Zacks Consensus Estimates are calling for earnings of $8.95 per share and revenue of $107.49 billion. These results would represent year-over-year changes of +1.02% and +0.86%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Target. 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 shifted 2.52% downward. Target is currently a Zacks Rank #3 (Hold).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 10.79. This represents a discount compared to its industry's average Forward P/E of 21.81.
We can additionally observe that TGT currently boasts a PEG ratio of 1.71. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.64 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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