Dollar Tree (DLTR) closed the latest trading day at $71.14, indicating a -1.15% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 0.22%.
Shares of the discount retailer have depreciated by 1.92% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69%.
Market participants will be closely following the financial results of Dollar Tree in its upcoming release. It is anticipated that the company will report an EPS of $2.18, marking a 14.51% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.24 billion, showing a 4.61% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.39 per share and revenue of $30.8 billion. These totals would mark changes of -8.49% and +0.65%, 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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Dollar Tree is carrying a Zacks Rank of #3 (Hold).
Investors should also note Dollar Tree's current valuation metrics, including its Forward P/E ratio of 13.35. For comparison, its industry has an average Forward P/E of 20.72, which means Dollar Tree is trading at a discount to the group.
We can additionally observe that DLTR currently boasts a PEG ratio of 2.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.29.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 26, positioning it in the top 11% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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