Dollar Tree (DLTR) ended the recent trading session at $83.42, demonstrating a +1.53% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 1.67%. Meanwhile, the Dow gained 1.07%, and the Nasdaq, a tech-heavy index, added 2.5%.
Heading into today, shares of the discount retailer had gained 22.37% over the past month, outpacing the Retail-Wholesale sector's loss of 4.21% and the S&P 500's loss of 6.57% in that time.
The investment community will be paying close attention to the earnings performance of Dollar Tree in its upcoming release. The company is predicted to post an EPS of $1.17, indicating a 18.18% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.54 billion, indicating a 40.53% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.19 per share and a revenue of $18.92 billion, representing changes of +1.76% and -38.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar Tree. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 has shifted 13.53% downward. Dollar Tree is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dollar Tree is at present trading with a Forward P/E ratio of 15.84. This indicates a discount in contrast to its industry's Forward P/E of 21.52.
Meanwhile, DLTR's PEG ratio is currently 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.68 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dollar Tree, Inc. (DLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
