Here's Why Target (TGT) Gained But Lagged the Market Today

Company Overview - Target's stock closed at $92.78, reflecting a slight increase of +0.08% from the previous day, but underperformed compared to the S&P 500's gain of 1.81% [1] - Over the past month, Target's shares have decreased by 11.28%, which is worse than the Retail-Wholesale sector's decline of 5.27% and the S&P 500's drop of 6.14% [1] Upcoming Earnings - Target is set to release its earnings report on May 21, 2025, with an expected EPS of$ 1.76, indicating a 13.3% decrease from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $24.56 billion, which is a slight increase of 0.1% compared to the previous year [2] Full-Year Estimates - For the full year, the Zacks Consensus Estimates predict earnings of$ 8.99 per share and revenue of $107.49 billion, representing year-over-year increases of +1.47% and +0.86%, respectively [3] - Recent adjustments to analyst estimates are crucial as they reflect the latest business trends, with positive revisions indicating analysts' confidence in Target's performance [3][4] Valuation Metrics - Target's current Forward P/E ratio stands at 10.31, which is significantly lower than the industry average of 21.68 [6] - The company has a PEG ratio of 1.63, compared to the industry average PEG ratio of 2.46, suggesting a more favorable valuation relative to growth expectations [6] Industry Context - The Retail - Discount Stores industry, part of the broader Retail-Wholesale sector, holds a Zacks Industry Rank of 162, placing it in the bottom 35% of over 250 industries [7] - The Zacks Industry Rank is based on the average Zacks Rank of individual stocks within the industry, indicating that higher-ranked industries tend to outperform lower-ranked ones [7]