Advertisement
U.S. markets open in 2 hours 2 minutes
  • S&P Futures

    5,306.00
    -2.25 (-0.04%)
     
  • Dow Futures

    40,141.00
    -3.00 (-0.01%)
     
  • Nasdaq Futures

    18,492.25
    -11.50 (-0.06%)
     
  • Russell 2000 Futures

    2,139.40
    +1.00 (+0.05%)
     
  • Crude Oil

    82.45
    +1.10 (+1.35%)
     
  • Gold

    2,232.40
    +19.70 (+0.89%)
     
  • Silver

    24.75
    -0.01 (-0.03%)
     
  • EUR/USD

    1.0797
    -0.0033 (-0.30%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.99
    +0.21 (+1.64%)
     
  • GBP/USD

    1.2625
    -0.0013 (-0.10%)
     
  • USD/JPY

    151.3610
    +0.1150 (+0.08%)
     
  • Bitcoin USD

    70,738.91
    +664.34 (+0.95%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,956.91
    +24.93 (+0.31%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Dollar Tree (DLTR) Gains But Lags Market: What You Should Know

In the latest trading session, Dollar Tree (DLTR) closed at $137.97, marking a +1.42% move from the previous day. The stock lagged the S&P 500's daily gain of 1.97%. At the same time, the Dow added 1.88%, and the tech-heavy Nasdaq gained 0.24%.

Prior to today's trading, shares of the discount retailer had lost 1.41% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.37% and the S&P 500's loss of 9.93% in that time.

Dollar Tree will be looking to display strength as it nears its next earnings release. On that day, Dollar Tree is projected to report earnings of $1.16 per share, which would represent year-over-year growth of 20.83%. Meanwhile, our latest consensus estimate is calling for revenue of $6.83 billion, up 6.45% from the prior-year quarter.

DLTR's full-year Zacks Consensus Estimates are calling for earnings of $7.27 per share and revenue of $28.01 billion. These results would represent year-over-year changes of +25.34% and +6.46%, respectively.

Any recent changes to analyst estimates for Dollar Tree should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.1% higher. Dollar Tree is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Dollar Tree currently has a Forward P/E ratio of 18.7. This valuation marks a discount compared to its industry's average Forward P/E of 20.4.

Also, we should mention that DLTR has a PEG ratio of 1.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DLTR's industry had an average PEG ratio of 1.96 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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
 
Dollar Tree, Inc. (DLTR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement