Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low price-earnings ratios (PEs), solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value: Target Corporation (NYSE:TGT).
Target Stock in Focus
Target stock may be an interesting play, thanks to its forward PE of 16, its P/S ratio of 0.7, and its decent dividend yield of 2.5%. These factors suggest that Target stock is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and TGT has decent revenue metrics to back up its earnings.
The Trailing-12-Month PE Ratio of Target Stock
But before you think that Target stock is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current-year earnings, the consensus has gone up by 3.5% in the past 30 days, thanks to 11 upward revisions in the past one month and no EPS estimate reductions.
This estimate strength is actually enough to push TGT stock to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So really, Target stock is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that TGT stock could be a great choice for value investors at this time.
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Target Corporation (TGT): Free Stock Analysis Report
