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Target (TGT) closed the latest trading day at $99.09, indicating a -1.97% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw a downswing of 0.64%, while the tech-heavy Nasdaq appreciated by 1.61%.

Prior to today's trading, shares of the retailer had gained 6.79% over the past month. This has lagged the Retail-Wholesale sector's gain of 9.91% and the S&P 500's gain of 9.07% in that time.

The upcoming earnings release of Target will be of great interest to investors. The company's earnings report is expected on May 21, 2025. The company is forecasted to report an EPS of $1.74, showcasing a 14.29% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $24.49 billion, down 0.15% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.91 per share and revenue of $107.18 billion, indicating changes of +0.56% and +0.57%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Target. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.94% decrease. Target is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Target is holding a Forward P/E ratio of 11.34. This valuation marks a discount compared to its industry's average Forward P/E of 22.19.

We can also see that TGT currently has a PEG ratio of 1.79. 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. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.62.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 75, this industry ranks in the top 31% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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