Dollar Tree (DLTR) Laps the Stock Market: Here's Why

Dollar Tree (DLTR) closed at $80.89 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 0.55%.Prior to today's trading, shares of the discount retailer had gained 6.79% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84% in that time.Analysts and investors alike will be keeping a close eye on the performance of Dollar Tree in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.17, reflecting a 18.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.54 billion, showing a 40.53% drop compared to the year-ago quarter.DLTR's full-year Zacks Consensus Estimates are calling for earnings of $5.19 per share and revenue of $18.92 billion. These results would represent year-over-year changes of +1.76% and -38.62%, respectively.Investors should also pay attention to any latest changes in analyst estimates for Dollar Tree. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.89% lower. Dollar Tree is currently sporting a Zacks Rank of #3 (Hold).With respect to valuation, Dollar Tree is currently being traded at a Forward P/E ratio of 15.46. This denotes a discount relative to the industry's average Forward P/E of 21.76.It is also worth noting that DLTR currently has a PEG ratio of 2.18. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% 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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dollar Tree, Inc. (DLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks