Back to top

Image: Bigstock

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

Read MoreHide Full Article

Target Hospitality (TH - Free Report) closed the most recent trading day at $13.70, moving +0.81% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the company had lost 4.09% over the past month, outpacing the Consumer Discretionary sector's loss of 11.32% and the S&P 500's loss of 9.94% in that time.

Wall Street will be looking for positivity from Target Hospitality as it approaches its next earnings report date. On that day, Target Hospitality is projected to report earnings of $0.55 per share, which would represent year-over-year growth of 685.71%. Our most recent consensus estimate is calling for quarterly revenue of $158.2 million, up 77.41% from the year-ago period.

TH's full-year Zacks Consensus Estimates are calling for earnings of $1.37 per share and revenue of $509.8 million. These results would represent year-over-year changes of +2840% and +74.99%, respectively.

Investors might also notice recent changes to analyst estimates for Target Hospitality. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 remained stagnant. Target Hospitality currently has a Zacks Rank of #2 (Buy).

Digging into valuation, Target Hospitality currently has a Forward P/E ratio of 9.9. This valuation marks a discount compared to its industry's average Forward P/E of 19.15.

Investors should also note that TH has a PEG ratio of 0.66 right now. 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. TH's industry had an average PEG ratio of 0.88 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% 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.

To follow TH in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Target Hospitality Corp. (TH) - free report >>

Published in