Target (TGT) Stock Declines Amid Market Gains: What You Need to Know
In the most recent trading session, shares of Target Corporation (TGT) closed at $138.22, reflecting a -0.74% change from its previous closing price. This decline contrasts with the overall market, as the S&P 500 index gained 0.16%. The Dow Jones Industrial Average saw an increase of 0.25%, while the Nasdaq, known for its tech-heavy composition, experienced a slight drop of -0.06%.
Over the past month, Target's stock has gone up 3.11%, outperforming the Retail-Wholesale sector, which dropped -4.84%, and the S&P 500, which fell by -2.8%.
As investors look ahead, they are particularly interested in how Target will perform in its upcoming earnings report. Analysts anticipate earnings per share (EPS) of $2.14, reflecting a significant 28.19% decline compared to the same quarter last year. Furthermore, the consensus estimate for revenue is projected at $30.38 billion, down 4.81% from the previous year's results.
For the entire year, the Zacks Consensus Estimates predict Target will earn $8.60 per share, representing a -3.8% change, and expect revenues to reach $106.03 billion, which would be a -1.28% decrease from last year.
Investors should also keep an eye on recent adjustments made to analyst estimates for Target, as these shifts often indicate trends in the company's near-term performance. Positive revisions signal analyst confidence about Target's business trajectory.
The Zacks Rank, a proprietary model designed to assess these estimate changes, assigns Target a current rating of #5 (Strong Sell). This ranking is part of a system that goes from #1 (Strong Buy) to #5 (Strong Sell) and has shown a strong historical performance. Stocks rated #1 have delivered an average annual return of 25% since 1988.
When evaluating Target’s valuation metrics, it’s noteworthy that its Forward P/E ratio stands at 16.18, which is lower than the industry average Forward P/E of 21.01. Additionally, its PEG ratio is currently 2.28, indicating that while the stock is reasonably priced relative to growth expectations, it is slightly above the average PEG of 2.39 for Retail - Discount Stores.
Target operates within the Retail-Wholesale sector, specifically in the Retail - Discount Stores industry, which currently ranks 156 out of over 250 industries in the Zacks Industry Rank. This position puts the industry in the bottom 38% of the overall ranking system.
The Zacks Industry Rank evaluates the strength of various industry groups by determining the average Zacks Rank of the stocks within those groups. Historical data shows that industries rated in the top 50% tend to outperform those in the bottom half by a factor of 2 to 1.
Investors are encouraged to stay informed on these metrics and other relevant news that could affect stock prices in future trading sessions.
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