Facts to Know Before You Trade

Target (TGT) ended the recent trading session at $136.47, demonstrating a -1.66% swing from the preceding day’s closing price. The stock trailed the S&P 500, which registered a daily gain of 0.12%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, lost 0.23%.

Prior to today’s trading, shares of the retailer had gained 4.77% over the past month. This has outpaced the Retail-Wholesale sector’s loss of 4.43% and the S&P 500’s loss of 3.45% in that time.

The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.14, marking a 28.19% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $30.38 billion, showing a 4.81% drop compared to the year-ago quarter.

TGT’s full-year Zacks Consensus Estimates are calling for earnings of $8.60 per share and revenue of $106.03 billion. These results would represent year-over-year changes of -3.8% and -1.28%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Target. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Target holds a Zacks Rank of #5 (Strong Sell).

Investors should also note Target’s current valuation metrics, including its Forward P/E ratio of 16.13. This valuation marks a discount compared to its industry’s average Forward P/E of 20.31.

It’s also important to note that TGT currently trades at a PEG ratio of 2.28. 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. TGT’s industry had an average PEG ratio of 2.28 as of yesterday’s close.

Story Continues