Dollar Tree (DLTR) closed the most recent trading day at $86.06, moving +0.41% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.1%. Elsewhere, the Dow lost 0.21%, while the tech-heavy Nasdaq added 0.72%.
Shares of the discount retailer have appreciated by 19.37% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 10.27% and the S&P 500's gain of 9.86%.
Market participants will be closely following the financial results 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. At the same time, our most recent consensus estimate is projecting a revenue of $4.53 billion, reflecting a 40.55% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.19 per share and a revenue of $18.92 billion, indicating changes of +1.76% and -38.62%, respectively, from the former 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Dollar Tree boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Dollar Tree is holding a Forward P/E ratio of 16.52. This indicates a discount in contrast to its industry's Forward P/E of 22.03.
It is also worth noting that DLTR currently has a PEG ratio of 2.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Discount Stores industry currently had an average PEG ratio of 2.55 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 155, placing it within the bottom 38% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
