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Dollar Tree (DLTR) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $163.34, marking a +1.37% move from the previous day. This move outpaced the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the discount retailer had gained 3.13% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.38% and lagged the S&P 500's gain of 3.2% in that time.
Investors will be hoping for strength from Dollar Tree as it approaches its next earnings release. The company is expected to report EPS of $1.57, up 27.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.77 billion, up 6.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $28.08 billion, which would represent changes of +40.52% and +6.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Dollar Tree. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.09% higher. Dollar Tree currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Dollar Tree has a Forward P/E ratio of 19.77 right now. For comparison, its industry has an average Forward P/E of 19.77, which means Dollar Tree is trading at a no noticeable deviation to the group.
It is also worth noting that DLTR currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.75 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 205, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DLTR in the coming trading sessions, be sure to utilize Zacks.com.
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Dollar Tree (DLTR) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $163.34, marking a +1.37% move from the previous day. This move outpaced the S&P 500's daily gain of 1.21%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the discount retailer had gained 3.13% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.38% and lagged the S&P 500's gain of 3.2% in that time.
Investors will be hoping for strength from Dollar Tree as it approaches its next earnings release. The company is expected to report EPS of $1.57, up 27.64% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.77 billion, up 6.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.15 per share and revenue of $28.08 billion, which would represent changes of +40.52% and +6.69%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Dollar Tree. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 0.09% higher. Dollar Tree currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Dollar Tree has a Forward P/E ratio of 19.77 right now. For comparison, its industry has an average Forward P/E of 19.77, which means Dollar Tree is trading at a no noticeable deviation to the group.
It is also worth noting that DLTR currently has a PEG ratio of 1.27. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 1.75 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 205, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DLTR in the coming trading sessions, be sure to utilize Zacks.com.