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

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In the latest trading session, Target (TGT - Free Report) closed at $159.69, marking a +1.02% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.77%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, added 2.01%.

Prior to today's trading, shares of the retailer had lost 4.57% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.99% and the S&P 500's gain of 2.11% in that time.

Investors will be hoping for strength from TGT as it approaches its next earnings release, which is expected to be November 18, 2020. On that day, TGT is projected to report earnings of $1.57 per share, which would represent year-over-year growth of 15.44%. Our most recent consensus estimate is calling for quarterly revenue of $20.80 billion, up 11.45% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $7.23 per share and revenue of $88.17 billion. These results would represent year-over-year changes of +13.15% and +12.87%, respectively.

It is also important to note the recent changes to analyst estimates for TGT. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. TGT is currently a Zacks Rank #2 (Buy).

Investors should also note TGT's current valuation metrics, including its Forward P/E ratio of 21.86. For comparison, its industry has an average Forward P/E of 21.86, which means TGT is trading at a no noticeable deviation to the group.

We can also see that TGT currently has a PEG ratio of 3.03. 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 was holding an average PEG ratio of 3.03 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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