Dollar Tree (DLTR) Earnings Beat Drives Margin Improvement

Voya Investment Management’s Voya MidCap Opportunities Fund released its Q4 2025 investor letter, titled “Seeking a More Favorable Risk/Return Trade-off”, outlining a quarter marked by solid market gains but relative fund underperformance. A copy of the letter can be downloaded here. During the quarter, the Fund underperformed its benchmark, the Russell Mid Cap Growth Index, primarily due to unfavorable stock selection, even as U.S. equity markets advanced on moderating inflation, robust earnings, and continued enthusiasm around artificial intelligence-driven investment. Looking ahead, the managers highlighted a cautiously constructive outlook, noting that while geopolitical risks and policy uncertainty persist, broadening market leadership beyond mega-cap growth, sustained corporate capital expenditure, and AI-led innovation could support returns, reinforcing the need for active and flexible positioning. In addition, please check the fund’s top five holdings to know its best picks in 2025.

Dollar Tree, Inc. (NASDAQ:DLTR) is a discount retailer operating fixed-price stores across North America, with earnings driven by traffic trends, cost controls, and margin recovery efforts. Dollar Tree, Inc. (NASDAQ:DLTR) accounted for 0.92% of the fund’s portfolio as of December 31, 2025. Consumer staples stock selection was among the areas contributing positively during the quarter. The one-month return of Dollar Tree, Inc. (NASDAQ:DLTR) was 1.52% while its shares have traded between $61.80 to $142.40 over the last 52 weeks. On January 22, 2026, Dollar Tree, Inc. (NASDAQ:DLTR) stock closed at approximately $126.79 per share, with a market capitalization of about $25.661 billion.

Voya Investment Management’s Voya MidCap Opportunities Fund stated the following regarding Dollar Tree, Inc. (NASDAQ:DLTR) in its Q4 2025 investor letter:

"A non-benchmark position in Dollar Tree, Inc. (NASDAQ:DLTR) contributed to performance driven by better-than-expected third-quarter earnings due to increased seasonal demand. Dollar Tree, Inc. (NASDAQ:DLTR)'s move to offer prices above $1 boosted margins and profitability."

Dollar Tree, Inc. (NASDAQ:DLTR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Dollar Tree, Inc. (NASDAQ:DLTR) at the end of the third quarter, which was 59 in the previous quarter. While we acknowledge the risk and potential of Dollar Tree, Inc. (NASDAQ:DLTR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Dollar Tree, Inc. (NASDAQ:DLTR) and shared the list of stocks that were discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.