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Dollar Tree (DLTR) closed at $80.89 in the latest trading session, marking a +0.9% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.75%, while the tech-heavy Nasdaq added 0.55%.
Prior to today's trading, shares of the discount retailer had gained 6.79% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Dollar Tree in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.17, reflecting a 18.18% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.54 billion, showing a 40.53% drop compared to the year-ago quarter.
DLTR's full-year Zacks Consensus Estimates are calling for earnings of $5.19 per share and revenue of $18.92 billion. These results would represent year-over-year changes of +1.76% and -38.62%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Dollar Tree. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 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 3.89% lower. Dollar Tree is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Dollar Tree is currently being traded at a Forward P/E ratio of 15.46. This denotes a discount relative to the industry's average Forward P/E of 21.76.
It is also worth noting that DLTR currently has a PEG ratio of 2.18. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.