廣告

Target (TGT) is a Top-Ranked Value Stock: Should You Buy?

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

廣告

Target (TGT)

Target Corporation has evolved from just being a pure brick-&-mortar retailer to an omni-channel entity. The company has been making investment in technologies, improving websites and mobile apps and modernizing supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players. Its acquisition of Shipt to provide same-day delivery of groceries, essentials, home, electronics as well as other products is worth noting.

TGT is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 16.9X for the current fiscal year compared to the Retail - Discount Stores industry's P/E of 20.6X. Additionally, TGT has a PEG Ratio of 1.5 and a Price/Cash Flow ratio of 10.5X. Value investors should also note TGT's Price/Sales ratio of 0.7X.

A company's earnings performance is important for value investors as well. For fiscal 2025, three analysts revised their earnings estimate higher in the last 60 days for TGT, while the Zacks Consensus Estimate has increased $0.06 to $9.39 per share. TGT also holds an average earnings surprise of 27.1%.

TGT should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Target Corporation (TGT) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research