Dollar Tree (DLTR) Dips More Than Broader Market: What You Should Know

Dollar Tree (DLTR) ended the recent trading session at $71.74, demonstrating a -0.69% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.27%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.03%.The discount retailer's shares have seen an increase of 2.95% over the last month, not keeping up with the Retail-Wholesale sector's gain of 8.91% and the S&P 500's gain of 4.27%.Market participants will be closely following the financial results of Dollar Tree in its upcoming release. The company is expected to report EPS of $2.18, down 14.51% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $8.24 billion, showing a 4.61% drop compared to the year-ago quarter.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dollar Tree. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Dollar Tree is currently sporting a Zacks Rank of #3 (Hold).Investors should also note Dollar Tree's current valuation metrics, including its Forward P/E ratio of 11.92. This denotes a discount relative to the industry's average Forward P/E of 19.57.One should further note that DLTR currently holds a PEG ratio of 2.05. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.12 as of yesterday's close.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.To follow DLTR in the coming trading sessions, be sure to utilize Zacks.com.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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks