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Here's Why Target (TGT) Gained But Lagged the Market Today
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Target (TGT - Free Report) closed at $145.49 in the latest trading session, marking a +0.74% move from the prior day. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Prior to today's trading, shares of the retailer had gained 2.97% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 2.93% in that time.
The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. In that report, analysts expect Target to post earnings of $2.38 per share. This would mark year-over-year growth of 25.93%. Meanwhile, the latest consensus estimate predicts the revenue to be $31.86 billion, indicating a 1.47% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Target. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. Target is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 15.84. This denotes a discount relative to the industry's average Forward P/E of 21.46.
It is also worth noting that TGT currently has a PEG ratio of 1.12. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Here's Why Target (TGT) Gained But Lagged the Market Today
Target (TGT - Free Report) closed at $145.49 in the latest trading session, marking a +0.74% move from the prior day. This move lagged the S&P 500's daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
Prior to today's trading, shares of the retailer had gained 2.97% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 2.93% in that time.
The investment community will be closely monitoring the performance of Target in its forthcoming earnings report. In that report, analysts expect Target to post earnings of $2.38 per share. This would mark year-over-year growth of 25.93%. Meanwhile, the latest consensus estimate predicts the revenue to be $31.86 billion, indicating a 1.47% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for Target. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.29% upward. Target is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Target is presently trading at a Forward P/E ratio of 15.84. This denotes a discount relative to the industry's average Forward P/E of 21.46.
It is also worth noting that TGT currently has a PEG ratio of 1.12. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.