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Dollar Tree (DLTR) Gains But Lags Market: What You Should Know
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Dollar Tree (DLTR - Free Report) closed at $142.15 in the latest trading session, marking a +0.35% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the discount retailer had gained 3.71% in the past month. In that same time, the Retail-Wholesale sector lost 6.55%, while the S&P 500 lost 6.15%.
Investors will be hoping for strength from Dollar Tree as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, up 6.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.27 per share and revenue of $28.01 billion, which would represent changes of +25.34% and +6.46%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar Tree. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Dollar Tree is currently a Zacks Rank #4 (Sell).
Investors should also note Dollar Tree's current valuation metrics, including its Forward P/E ratio of 19.47. Its industry sports an average Forward P/E of 21.32, so we one might conclude that Dollar Tree is trading at a discount comparatively.
Also, we should mention that DLTR has a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dollar Tree (DLTR) Gains But Lags Market: What You Should Know
Dollar Tree (DLTR - Free Report) closed at $142.15 in the latest trading session, marking a +0.35% move from the prior day. This move lagged the S&P 500's daily gain of 3.06%. At the same time, the Dow added 2.8%, and the tech-heavy Nasdaq gained 0.18%.
Coming into today, shares of the discount retailer had gained 3.71% in the past month. In that same time, the Retail-Wholesale sector lost 6.55%, while the S&P 500 lost 6.15%.
Investors will be hoping for strength from Dollar Tree as it approaches 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, the Zacks Consensus Estimate for revenue is projecting net sales of $6.83 billion, up 6.45% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.27 per share and revenue of $28.01 billion, which would represent changes of +25.34% and +6.46%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar Tree. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. Dollar Tree is currently a Zacks Rank #4 (Sell).
Investors should also note Dollar Tree's current valuation metrics, including its Forward P/E ratio of 19.47. Its industry sports an average Forward P/E of 21.32, so we one might conclude that Dollar Tree is trading at a discount comparatively.
Also, we should mention that DLTR has a PEG ratio of 1.23. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Discount Stores industry currently had an average PEG ratio of 1.94 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.