We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Dollar Tree (DLTR) Outpaced the Stock Market Today
Read MoreHide Full Article
Dollar Tree (DLTR - Free Report) closed the latest trading day at $104.82, indicating a +0.95% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
Coming into today, shares of the discount retailer had lost 4.44% in the past month. In that same time, the Retail-Wholesale sector gained 2.58%, while the S&P 500 gained 3.82%.
The investment community will be closely monitoring the performance of Dollar Tree in its forthcoming earnings report. The company's upcoming EPS is projected at $1.06, signifying a 16.48% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.51 billion, up 2.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.63 per share and a revenue of $31.28 billion, demonstrating changes of +12.56% and +2.2%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar Tree. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% downward. Dollar Tree is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dollar Tree is presently trading at a Forward P/E ratio of 15.66. This valuation marks a discount compared to its industry's average Forward P/E of 21.5.
We can also see that DLTR currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.5.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Dollar Tree (DLTR) Outpaced the Stock Market Today
Dollar Tree (DLTR - Free Report) closed the latest trading day at $104.82, indicating a +0.95% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
Coming into today, shares of the discount retailer had lost 4.44% in the past month. In that same time, the Retail-Wholesale sector gained 2.58%, while the S&P 500 gained 3.82%.
The investment community will be closely monitoring the performance of Dollar Tree in its forthcoming earnings report. The company's upcoming EPS is projected at $1.06, signifying a 16.48% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.51 billion, up 2.59% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.63 per share and a revenue of $31.28 billion, demonstrating changes of +12.56% and +2.2%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar Tree. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.31% downward. Dollar Tree is currently a Zacks Rank #4 (Sell).
Looking at valuation, Dollar Tree is presently trading at a Forward P/E ratio of 15.66. This valuation marks a discount compared to its industry's average Forward P/E of 21.5.
We can also see that DLTR currently has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.5.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.