Target Corp. (TGT) is looking like a winner in the value-driven retail environment, with its share price recently hitting a new 52-week high on strong Q3 earnings and an optimistic outlook from mid November.

Third-Quarter Results

Sales were up a bit more than 1% from last year to $15.28 billion. Earnings came in strong at 58 cents per share, 9 cents ahead of the Zacks Consensus Estimate. The company has beat in each of the last 3 quarters by an average of 18%.

Target noted that its interest expense dropped sharply from last year, down $43 million to $191 million. Cash and equivalents held steady at $864 million.

Estimates Up

Estimates are up a bit in the last few months, with the current year adding 10 cents and moving to $3.17 per share. Based on this earnings projection, this stock has a P/E multiple of 15X, a slight discount to the overall market. The next-year estimate is projecting 12% earnings growth.

The Chart

Shares of TGT have had a great year, logging big gains after rebounding from the March low. More recently, shares have traded lower from the 52-week high but still remain in elevated territory. Take a look.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service.

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