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Why Dollar Tree (DLTR) Outpaced the Stock Market Today
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In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $66.97, marking a +1.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.76%.
Coming into today, shares of the discount retailer had lost 6.27% in the past month. In that same time, the Retail-Wholesale sector lost 0.42%, while the S&P 500 gained 1.47%.
The upcoming earnings release of Dollar Tree will be of great interest to investors. The company is expected to report EPS of $1.06, up 9.28% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.45 billion, reflecting a 1.88% rise from the equivalent quarter last year.
DLTR's full-year Zacks Consensus Estimates are calling for earnings of $5.33 per share and revenue of $30.71 billion. These results would represent year-over-year changes of -9.51% and +0.34%, respectively.
It is also important to note the recent changes to analyst estimates for Dollar Tree. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dollar Tree boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Dollar Tree is presently trading at a Forward P/E ratio of 12.41. For comparison, its industry has an average Forward P/E of 20.4, which means Dollar Tree is trading at a discount to the group.
It is also worth noting that DLTR currently has a PEG ratio of 2.8. 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 had an average PEG ratio of 2.37 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why Dollar Tree (DLTR) Outpaced the Stock Market Today
In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $66.97, marking a +1.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.22%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.76%.
Coming into today, shares of the discount retailer had lost 6.27% in the past month. In that same time, the Retail-Wholesale sector lost 0.42%, while the S&P 500 gained 1.47%.
The upcoming earnings release of Dollar Tree will be of great interest to investors. The company is expected to report EPS of $1.06, up 9.28% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.45 billion, reflecting a 1.88% rise from the equivalent quarter last year.
DLTR's full-year Zacks Consensus Estimates are calling for earnings of $5.33 per share and revenue of $30.71 billion. These results would represent year-over-year changes of -9.51% and +0.34%, respectively.
It is also important to note the recent changes to analyst estimates for Dollar Tree. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dollar Tree boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Dollar Tree is presently trading at a Forward P/E ratio of 12.41. For comparison, its industry has an average Forward P/E of 20.4, which means Dollar Tree is trading at a discount to the group.
It is also worth noting that DLTR currently has a PEG ratio of 2.8. 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 had an average PEG ratio of 2.37 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.