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

Target (TGT) closed the most recent trading day at $115.45, moving -0.29% from the previous trading session. This change lagged the S&P 500's 1.01% gain on the day. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 1.43%.

Heading into today, shares of the retailer had lost 10.17% over the past month, lagging the Retail-Wholesale sector's loss of 1.6% and the S&P 500's gain of 0.19% in that time.

TGT will be looking to display strength as it nears its next earnings release. In that report, analysts expect TGT to post earnings of $1.66 per share. This would mark year-over-year growth of 8.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.67 billion, up 3.01% from the year-ago period.

TGT's full-year Zacks Consensus Estimates are calling for earnings of $6.35 per share and revenue of $78.33 billion. These results would represent year-over-year changes of +17.81% and +3.95%, respectively.

Any recent changes to analyst estimates for TGT should also be noted by investors. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.44% lower within the past month. TGT is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TGT is currently trading at a Forward P/E ratio of 18.23. This represents a discount compared to its industry's average Forward P/E of 23.29.

Also, we should mention that TGT has a PEG ratio of 2.42. 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. The Retail - Discount Stores was holding an average PEG ratio of 2.12 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 36, which puts it in the top 15% 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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