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Dollar Tree (DLTR) Stock Moves -1.32%: What You Should Know

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In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $73.16, marking a -1.32% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.59%. Meanwhile, the Dow lost 0.45%, and the Nasdaq, a tech-heavy index, lost 2.78%.

The discount retailer's stock has dropped by 0.08% in the past month, falling short of the Retail-Wholesale sector's gain of 0.87% and outpacing the S&P 500's loss of 2.23%.

The investment community will be paying close attention to the earnings performance of Dollar Tree in its upcoming release. The company is forecasted to report an EPS of $2.18, showcasing a 14.51% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.23 billion, down 4.7% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Dollar Tree. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% fall in the Zacks Consensus EPS estimate. At present, Dollar Tree boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dollar Tree has a Forward P/E ratio of 12.24 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.06.

We can also see that DLTR currently has a PEG ratio of 2.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DLTR's industry had an average PEG ratio of 2.13 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 65, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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