Dollar Tree (DLTR) Stock Drops Despite Market Gains: Important Facts to Note

The most recent trading session ended with Dollar Tree (DLTR) standing at $74.23, reflecting a -0.11% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.39% for the day. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.Coming into today, shares of the discount retailer had lost 0.93% in the past month. In that same time, the Retail-Wholesale sector gained 8.29%, while the S&P 500 gained 1.7%.The investment community will be closely monitoring the performance of Dollar Tree in its forthcoming earnings report. The company is predicted to post an EPS of $2.18, indicating a 14.51% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $8.24 billion, indicating a 4.61% decline compared to the corresponding quarter of the prior year.Investors should also take note of any recent adjustments to analyst estimates for Dollar Tree. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Dollar Tree holds a Zacks Rank of #3 (Hold).From a valuation perspective, Dollar Tree is currently exchanging hands at a Forward P/E ratio of 12.26. This signifies a discount in comparison to the average Forward P/E of 19.76 for its industry.Also, we should mention that DLTR has a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.11.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 35% echelons of all 250+ industries.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.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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