Is Target (TGT) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Target (TGT) is a stock many investors are watching right now. TGT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 15.24, while its industry has an average P/E of 19.11. Over the last 12 months, TGT's Forward P/E has been as high as 16.96 and as low as 12.34, with a median of 14.32.

We should also highlight that TGT has a P/B ratio of 3.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.73. Within the past 52 weeks, TGT's P/B has been as high as 4.21 and as low as 2.64, with a median of 3.48.

Finally, investors should note that TGT has a P/CF ratio of 8.06. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.18. Over the past year, TGT's P/CF has been as high as 8.54 and as low as 5.89, with a median of 7.43.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Target is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGT feels like a great value stock at the moment.

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