Dollar Tree (DLTR) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Dollar Tree (DLTR) closed the latest trading day at $89.34, indicating a -1.13% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.56% for the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.51%.Shares of the discount retailer have appreciated by 11.71% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.88% and the S&P 500's gain of 7.37%.The investment community will be paying close attention to the earnings performance of Dollar Tree in its upcoming release. The company is slated to reveal its earnings on June 4, 2025. It is anticipated that the company will report an EPS of $1.18, marking a 17.48% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.54 billion, reflecting a 40.47% fall from the equivalent quarter last year.Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.17 per share and revenue of $18.93 billion. These totals would mark changes of +1.37% and -38.58%, respectively, from last year.Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dollar Tree. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.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 moved 0.24% lower. Currently, Dollar Tree is carrying a Zacks Rank of #3 (Hold).Looking at its valuation, Dollar Tree is holding a Forward P/E ratio of 17.46. This denotes a discount relative to the industry's average Forward P/E of 22.14.We can also see that DLTR currently has a PEG ratio of 2.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Discount Stores was holding an average PEG ratio of 2.75 at yesterday's closing price.The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 42% echelons of all 250+ industries.The Zacks Industry Rank gauges the strength of our 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.You can find more information on all of these metrics, and much more, on Zacks.com.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks