Back to top

Image: Bigstock

The Zacks Analyst Blog Highlights: Target, Walmart, Dollar Tree, Burlington and Dollar General

Read MoreHide Full Article

For Immediate Release

Chicago, IL – February 23, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Target (TGT - Free Report) , Walmart (WMT - Free Report) , Dollar Tree, Inc. (DLTR - Free Report) , Burlington Stores, Inc. (BURL - Free Report) and Dollar General Corporation (DG - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

3 Discount Industry Retail Stocks to Buy Amid Industry Growth

Target, Walmart and countless others retailers have been forced to revamp their business models on the fly to help fend off a wave of online sellers over the past few years. However, at least one retail industry—discount retail—actually seems to be better off these days.

There are an array of reasons that off-priced sellers are bucking sector-wide trends, most of which relate directly to the socioeconomic background of their customers and physical retail locations.

The discount retail uptick occurred even before the new Republican tax law was passed, but now analysts seem more confident in the sector based on these GOP-related headwinds. J.P. Morgan analysts recently reiterated their “Overweight” rating for Dollar Tree, noting that low-to-middle income households are set to earn substantial monetary benefits this year.

Along with more money in the pockets of their consumer base, the retailers themselves are set to see lower effective tax rates going forward.

With all of this said, let’s take a look at three discount retail stocks that growth-minded investors might want to consider.

1.       Dollar Tree, Inc.

Dollar Tree is one of the last true remaining dollar stores and is currently a Zacks Rank #2 (Buy). On top of reiterating the stock’s rating, J.P. Morgan analysts also upped its price target from $120 per share to $133 per share, which represents a 26% upside from Wednesday's closing price.

Dollar Tree is expected to see its earnings surge by 36% in the fourth quarter and 27.56% for the year, based on our current Zacks Consensus Estimates. The company also sports an Earnings ESP of 1.95%, which means earnings estimates have been higher directly ahead of its Q4 report—set for early March.

The company has also witnessed nine earnings estimate revisions with 100% agreement to the upside for the coming fiscal year. Looking even further ahead, Dollar Tree is projected to grow its earnings per share figures at an annualized rate of 14.55% over the next three to five years.

2.       Burlington Stores, Inc.

Burlington is currently a Zacks Rank #2 (Buy) and rocks an “A” grade for Growth in our Style Scores system. This off-priced clothing retailer expects to open a total of 37 new stores in fiscal 2017. Burlington is also projected to see its Q4 and full-year revenues climb 16.85% and 32.10%, respectively, when it reports its results on March 1.

Furthermore, the retailer has earned six earnings estimate revisions for fiscal 2018 with 100% agreement to the upside. Investors should also be happy to note that Burlington has met or topped earnings estimates for four straight years, with an average surprise of 15% in the trailing four quarters. Burlington is expected to see its bottom line surge at an annualized rate of 18.65% over the next three to five years.

3.       Dollar General Corporation

The discount retailer is currently a Zacks Rank #2 (Buy) and sports an overall “A” VGM score. In the third quarter, Dollar General announced its plan to open 900 new stores and remodel 1,00 locations in 2018. DG has received four upward earnings estimate revisions within the last 60 days for its upcoming Q4 results. On top of that, Dollar General’s Earnings ESP of 2.20% means that estimates are coming in higher directly ahead of its fourth-quarter report. 

Looking ahead to the upcoming fiscal year, the company has earned eight earnings estimate revisions with 100% agreement to the upside. Dollar General is also expected to expand its EPS figure by nearly 21% next year. On top of all of this, DG is projected to expand its EPS figures at an annualized rate of 11.55% over the next three to five years.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com                                                   

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.