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Dollar Tree (DLTR) Gains As Market Dips: What You Should Know
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Dollar Tree (DLTR - Free Report) closed at $139.97 in the latest trading session, marking a +0.14% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Coming into today, shares of the discount retailer had lost 1.99% in the past month. In that same time, the Retail-Wholesale sector lost 4.51%, while the S&P 500 lost 3.76%.
Wall Street will be looking for positivity from Dollar Tree as it approaches its next earnings report date. In that report, analysts expect Dollar Tree to post earnings of $1.16 per share. This would mark year-over-year growth of 20.83%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Dollar Tree should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 remained stagnant. Dollar Tree is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Dollar Tree is currently trading at a Forward P/E ratio of 19.22. Its industry sports an average Forward P/E of 21.21, 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 1.21. 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 2 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 221, putting it in the bottom 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dollar Tree (DLTR) Gains As Market Dips: What You Should Know
Dollar Tree (DLTR - Free Report) closed at $139.97 in the latest trading session, marking a +0.14% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.67%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Coming into today, shares of the discount retailer had lost 1.99% in the past month. In that same time, the Retail-Wholesale sector lost 4.51%, while the S&P 500 lost 3.76%.
Wall Street will be looking for positivity from Dollar Tree as it approaches its next earnings report date. In that report, analysts expect Dollar Tree to post earnings of $1.16 per share. This would mark year-over-year growth of 20.83%. Our most recent consensus estimate is calling for quarterly revenue 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.
Any recent changes to analyst estimates for Dollar Tree should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 remained stagnant. Dollar Tree is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Dollar Tree is currently trading at a Forward P/E ratio of 19.22. Its industry sports an average Forward P/E of 21.21, 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 1.21. 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 2 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 221, putting it in the bottom 13% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.