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If You Invested $1000 in Dollar Tree a Decade Ago, This is How Much It'd Be Worth Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Dollar Tree (DLTR - Free Report) ten years ago? It may not have been easy to hold on to DLTR for all that time, but if you did, how much would your investment be worth today?
Dollar Tree's Business In-Depth
With that in mind, let's take a look at Dollar Tree's main business drivers.
Founded in 1986 and headquartered in Chesapeake, VA, Dollar Tree Inc. is an operator of discount variety stores offering merchandise and other assortments. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns. The company offers a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items. Its stores are supported by a nationwide logistics network and distribution centers.
Dollar Tree also owns an e-commerce platform – DollarTree.com – which sells its merchandise in bulk to individuals and small businesses as well as organizations. Through its online platform, the company advertises its in-store events and showcases its special and seasonal promotions for featured products. Further, it acquired Family Dollar Stores, Inc. on July 6, 2015.
The company operates in two reporting business segments: Dollar Tree and Family Dollar.
Dollar Tree: Being the major operator of discount variety stores, this segment offers merchandise at the fixed price point of $1.00. The segment has nearly 7,652 stores operating under the Dollar Tree and Dollar Tree Canada banners, 12 distribution centers in the United States and two in Canada. Dollar Tree stores primarily range from 8,000 - 10,000 selling square feet.
Family Dollar: This segment operates general merchandise discount retail stores with competitively-priced merchandise in the neighborhood stores. It has nearly 7,827 stores, which sell merchandise at prices ranging from $1.00 to $10.00. These stores primarily range from 6,000 - 8,000 selling square feet. The segment includes store operations under the Family Dollar brand and 11 distribution centers.
As of Jan 29, 2022, the company operated 16,077 stores in 48 states and five Canada provinces.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dollar Tree, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2012 would be worth $4,121.30, or a gain of 312.13%, as of November 8, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 172.98% and the price of gold increased -7.23% over the same time frame in comparison.
Going forward, analysts are expecting more upside for DLTR.
Shares of Dollar Tree lagged the industry in the past three months. The dismal performance can be attributed to its slashed earnings view for fiscal 2022 backed by the inflationary pressures, plans for pricing investment at Family Dollar and consumers’ shift to consumable products. This is expected to impact gross margin in fiscal 2022. Freight expenses, markdowns, shrink and unfavorable product mix related to a shift toward lower-margin consumable products continue to be headwinds. However, Dollar Tree boasts a robust earnings surprise trend, which continued in second-quarter fiscal 2022. The company reported 11th straight quarter of earnings beat in the quarter. The top and bottom lines also improved year over year on continued demand for the company’s products, sales growth and improved margins.
The stock has jumped 13.13% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.
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If You Invested $1000 in Dollar Tree a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Dollar Tree (DLTR - Free Report) ten years ago? It may not have been easy to hold on to DLTR for all that time, but if you did, how much would your investment be worth today?
Dollar Tree's Business In-Depth
With that in mind, let's take a look at Dollar Tree's main business drivers.
Founded in 1986 and headquartered in Chesapeake, VA, Dollar Tree Inc. is an operator of discount variety stores offering merchandise and other assortments. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns. The company offers a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items. Its stores are supported by a nationwide logistics network and distribution centers.
Dollar Tree also owns an e-commerce platform – DollarTree.com – which sells its merchandise in bulk to individuals and small businesses as well as organizations. Through its online platform, the company advertises its in-store events and showcases its special and seasonal promotions for featured products. Further, it acquired Family Dollar Stores, Inc. on July 6, 2015.
The company operates in two reporting business segments: Dollar Tree and Family Dollar.
Dollar Tree: Being the major operator of discount variety stores, this segment offers merchandise at the fixed price point of $1.00. The segment has nearly 7,652 stores operating under the Dollar Tree and Dollar Tree Canada banners, 12 distribution centers in the United States and two in Canada. Dollar Tree stores primarily range from 8,000 - 10,000 selling square feet.
Family Dollar: This segment operates general merchandise discount retail stores with competitively-priced merchandise in the neighborhood stores. It has nearly 7,827 stores, which sell merchandise at prices ranging from $1.00 to $10.00. These stores primarily range from 6,000 - 8,000 selling square feet. The segment includes store operations under the Family Dollar brand and 11 distribution centers.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Dollar Tree, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in November 2012 would be worth $4,121.30, or a gain of 312.13%, as of November 8, 2022, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 172.98% and the price of gold increased -7.23% over the same time frame in comparison.
Going forward, analysts are expecting more upside for DLTR.
Shares of Dollar Tree lagged the industry in the past three months. The dismal performance can be attributed to its slashed earnings view for fiscal 2022 backed by the inflationary pressures, plans for pricing investment at Family Dollar and consumers’ shift to consumable products. This is expected to impact gross margin in fiscal 2022. Freight expenses, markdowns, shrink and unfavorable product mix related to a shift toward lower-margin consumable products continue to be headwinds. However, Dollar Tree boasts a robust earnings surprise trend, which continued in second-quarter fiscal 2022. The company reported 11th straight quarter of earnings beat in the quarter. The top and bottom lines also improved year over year on continued demand for the company’s products, sales growth and improved margins.
The stock has jumped 13.13% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.