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Here's Why Dollar Tree (DLTR) Fell More Than Broader Market
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Dollar Tree (DLTR - Free Report) closed at $69.36 in the latest trading session, marking a -0.39% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.
Shares of the discount retailer have appreciated by 4.58% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.41% and the S&P 500's gain of 5.94%.
The investment community will be closely monitoring the performance of Dollar Tree in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.06, reflecting a 9.28% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.45 billion, indicating a 1.88% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $5.33 per share and a revenue of $30.71 billion, demonstrating changes of -9.51% and +0.34%, respectively, from the preceding 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Dollar Tree currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Dollar Tree is currently being traded at a Forward P/E ratio of 13.07. This denotes a discount relative to the industry's average Forward P/E of 20.17.
We can also see that DLTR currently has a PEG ratio of 2.95. 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 2.42 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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Here's Why Dollar Tree (DLTR) Fell More Than Broader Market
Dollar Tree (DLTR - Free Report) closed at $69.36 in the latest trading session, marking a -0.39% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.21% for the day. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.
Shares of the discount retailer have appreciated by 4.58% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.41% and the S&P 500's gain of 5.94%.
The investment community will be closely monitoring the performance of Dollar Tree in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.06, reflecting a 9.28% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.45 billion, indicating a 1.88% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $5.33 per share and a revenue of $30.71 billion, demonstrating changes of -9.51% and +0.34%, respectively, from the preceding 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. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Dollar Tree currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Dollar Tree is currently being traded at a Forward P/E ratio of 13.07. This denotes a discount relative to the industry's average Forward P/E of 20.17.
We can also see that DLTR currently has a PEG ratio of 2.95. 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 2.42 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 204, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.