Dollar Tree (DLTR) Exceeds Market Returns: Some Facts to Consider

The latest trading session saw Dollar Tree (DLTR) ending at $72.07, denoting a +1.39% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 1%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 1.51%.Coming into today, shares of the discount retailer had gained 2.92% in the past month. In that same time, the Retail-Wholesale sector lost 3.58%, while the S&P 500 lost 2.14%.Investors will be eagerly watching for the performance of Dollar Tree in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.18, indicating a 14.51% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $8.24 billion, reflecting a 4.61% fall from the equivalent quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $5.39 per share and revenue of $30.8 billion, which would represent changes of -8.49% and +0.65%, respectively, from the prior year.Investors should also take note of any recent adjustments to analyst estimates for Dollar Tree. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been no change in the Zacks Consensus EPS estimate. Currently, Dollar Tree is carrying a Zacks Rank of #3 (Hold).Valuation is also important, so investors should note that Dollar Tree has a Forward P/E ratio of 13.18 right now. Its industry sports an average Forward P/E of 20.32, so one might conclude that Dollar Tree is trading at a discount comparatively.Investors should also note that DLTR has a PEG ratio of 2.26 right now. 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. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.26.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.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.Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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