The most recent trading session ended with Dollar Tree (DLTR) standing at $69.10, reflecting a -1.5% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 1.78%. Elsewhere, the Dow saw a downswing of 0.99%, while the tech-heavy Nasdaq depreciated by 2.61%.
Shares of the discount retailer witnessed a loss of 5.49% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.16% and the S&P 500's loss of 3.48%.
The upcoming earnings release of Dollar Tree will be of great interest to investors. The company is expected to report EPS of $2.18, down 14.51% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $8.23 billion, indicating a 4.72% decline compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Dollar Tree. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Dollar Tree is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Dollar Tree's current valuation metrics, including its Forward P/E ratio of 11.63. This indicates a discount in contrast to its industry's Forward P/E of 18.82.
We can also see that DLTR currently has a PEG ratio of 2.69. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.38 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% 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.
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 Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.