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Dollar Tree (DLTR) Advances While Market Declines: Some Information for Investors

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In the latest trading session, Dollar Tree (DLTR - Free Report) closed at $76.29, marking a +0.89% move from the previous day. This change outpaced the S&P 500's 0.43% loss on the day. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 0.47%.

Shares of the discount retailer witnessed a gain of 5.07% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.51% and outperforming the S&P 500's gain of 2.6%.

Market participants will be closely following the financial results of Dollar Tree in its upcoming release. The company is forecasted to report an EPS of $2.18, showcasing a 14.51% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.23 billion, indicating a 4.7% decline compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dollar Tree. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, the Zacks Consensus EPS estimate remained stagnant. Right now, Dollar Tree possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Dollar Tree currently has a Forward P/E ratio of 12.48. Its industry sports an average Forward P/E of 18.82, so one might conclude that Dollar Tree is trading at a discount comparatively.

Meanwhile, DLTR's PEG ratio is currently 2.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 2.14 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.


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