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Target Hospitality (TH) Dips More Than Broader Markets: What You Should Know

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Target Hospitality (TH - Free Report) closed the most recent trading day at $12.26, moving -1.84% from the previous trading session. This change lagged the S&P 500's daily loss of 1.72%. At the same time, the Dow lost 1.62%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the company had lost 13.32% in the past month. In that same time, the Consumer Discretionary sector lost 10.47%, while the S&P 500 lost 9.09%.

Investors will be hoping for strength from Target Hospitality as it approaches its next earnings release. 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%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $158.2 million, up 77.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.37 per share and revenue of $509.8 million. These totals would mark changes of +2840% and +74.99%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Target Hospitality. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Target Hospitality is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Target Hospitality is currently trading at a Forward P/E ratio of 9.09. This represents a discount compared to its industry's average Forward P/E of 18.03.

Investors should also note that TH has a PEG ratio of 0.61 right now. 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 Leisure and Recreation Services was holding an average PEG ratio of 0.83 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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.

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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