Dollar Tree (DLTR) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Dollar Tree (DLTR) closed at $115.37 in the latest trading session, marking a +0.67% move from the prior day. This change lagged the S&P 500's 0.7% gain on the day. Elsewhere, the Dow saw an upswing of 0.01%, while the tech-heavy Nasdaq appreciated by 1.1%.

Shares of the discount retailer have depreciated by 5.83% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.98% and the S&P 500's gain of 4.03%.

Investors will be eagerly watching for the performance of Dollar Tree in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 5, 2024. In that report, analysts expect Dollar Tree to post earnings of $1.43 per share. This would mark a year-over-year decline of 2.72%. Our most recent consensus estimate is calling for quarterly revenue of $7.63 billion, up 4.23% from the year-ago period.

DLTR's full-year Zacks Consensus Estimates are calling for earnings of $6.88 per share and revenue of $31.37 billion. These results would represent year-over-year changes of +16.81% and +2.49%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar Tree. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.55% downward. At present, Dollar Tree boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Dollar Tree is currently exchanging hands at a Forward P/E ratio of 16.67. This expresses a discount compared to the average Forward P/E of 20.77 of its industry.

One should further note that DLTR currently holds a PEG ratio of 1.12. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DLTR's industry had an average PEG ratio of 1.99 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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