Dollar Tree (DLTR) closed the latest trading day at $71.27, indicating a -0.32% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.42%, while the tech-heavy Nasdaq appreciated by 0.83%.
Shares of the discount retailer have appreciated by 10.61% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 5.95% and the S&P 500's gain of 3.11%.
Market participants will be closely following the financial results of Dollar Tree in its upcoming release. The company plans to announce its earnings on December 4, 2024. The company is expected to report EPS of $1.07, up 10.31% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.45 billion, up 1.91% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.35 per share and a revenue of $30.71 billion, indicating changes of -9.17% and +0.35%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Dollar Tree. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. Dollar Tree is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Dollar Tree is currently being traded at a Forward P/E ratio of 13.35. Its industry sports an average Forward P/E of 21.07, so one might conclude that Dollar Tree is trading at a discount comparatively.
Investors should also note that DLTR has a PEG ratio of 2.83 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.56 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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