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Dollar Tree (DLTR) Outpaces Stock Market Gains: What You Should Know

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Dollar Tree (DLTR - Free Report) closed the most recent trading day at $66.40, moving +0.97% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.35% for the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.17%.

The discount retailer's shares have seen a decrease of 1.78% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.68% and the S&P 500's gain of 1.69%.

The investment community will be paying close attention to the earnings performance of Dollar Tree in its upcoming release. The company is slated to reveal its earnings on December 4, 2024. On that day, Dollar Tree is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 10.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.45 billion, up 1.91% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.35 per share and a revenue of $30.71 billion, signifying shifts of -9.17% and +0.35%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Dollar Tree. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. At present, Dollar Tree boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Dollar Tree is currently exchanging hands at a Forward P/E ratio of 12.28. This expresses a discount compared to the average Forward P/E of 20.1 of its industry.

One should further note that DLTR currently holds a PEG ratio of 2.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.4.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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