The most recent trading session ended with Dollar Tree (DLTR) standing at $73.20, reflecting a +1.95% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 2.24% for the day. At the same time, the Dow lost 1.73%, and the tech-heavy Nasdaq lost 3.07%.
Coming into today, shares of the discount retailer had gained 10.5% in the past month. In that same time, the Retail-Wholesale sector lost 3.33%, while the S&P 500 lost 4.17%.
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 $1.17, showcasing a 18.18% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.54 billion, indicating a 40.53% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.19 per share and revenue of $18.92 billion, indicating changes of +1.76% and -38.62%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Dollar Tree. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 14.01% downward. Dollar Tree currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Dollar Tree currently has a Forward P/E ratio of 13.84. Its industry sports an average Forward P/E of 22.01, so one might conclude that Dollar Tree is trading at a discount comparatively.
Investors should also note that DLTR has a PEG ratio of 1.95 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.49 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Dollar Tree, Inc. (DLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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