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Shake Some Green Off Dollar Tree Under $64 a Share

Dollar Tree Inc. (NASDAQ: DLTR ) closed around $66 a share yesterday, and the charts show that this stock is ripe for the plucking.

This operator of deep discount variety stores offering merchandise at $1, defied analysts by reporting a very strong quarter on Friday. The Dollar Tree earnings report showed revenues up 14% and earnings at 82 cents vs. analysts' expectations of 76 cents. Over the last four quarters the company has managed to beat analysts' forecasts by 11%. Operating costs have been cut and same-store sales increased by 7.1%. S&P estimates earnings for 2011 to be $3.10 and $3.90 in 2012. Other analysts are revising their future estimates for Dollar Tree stock to even higher levels.

The company has proven its defensive quality in a weak economy. Technically the recent breakout has a target of $70, but the stochastic indicates that it could pull back following the recent breakout. Buy a half position now and go for a full position if DLTR stock falls to $64 or lower.

Read Sam Collins' market outlook here . Read Serge Berger's market outlook here .

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


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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