Stock of the Day

January 19, 2024

Dollar Tree (DLTR)

$74.96
-$1.33 (-1.7%)
Market Cap: $16.40B

About Dollar Tree

Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.

Dollar Tree Bull Case

Here are some ways that investors could benefit from investing in Dollar Tree, Inc.:

  • Dollar Tree, Inc. reported a quarterly earnings per share (EPS) of $1.12, exceeding the consensus estimate of $1.07, indicating strong financial performance and effective management.
  • The company achieved a revenue of $7.57 billion for the quarter, surpassing analysts' expectations of $7.45 billion, showcasing its ability to generate sales growth.
  • With a market capitalization of $15.37 billion, Dollar Tree, Inc. is a significant player in the retail sector, providing stability and potential for growth.
  • The current stock price is $71.49, which may present a buying opportunity for investors looking for value in a company with a strong market presence.
  • Dollar Tree, Inc. has a positive return on equity of 16.89%, indicating effective use of shareholders' equity to generate profits.

Dollar Tree Bear Case

Investors should be bearish about investing in Dollar Tree, Inc. for these reasons:

  • The company has a negative net margin of 3.34%, suggesting that it is currently facing challenges in profitability, which could impact future earnings.
  • Dollar Tree, Inc. has a quick ratio of 0.17, indicating potential liquidity issues, as it may struggle to meet short-term obligations without selling inventory.
  • The stock has experienced a decline of 2.5% recently, reflecting market volatility and investor sentiment that may be cautious about the company's future performance.
  • With a PE ratio of -15.04, the company is currently not profitable based on its earnings, which could deter potential investors looking for positive earnings growth.
  • The stock has a 52-week high of $151.21, suggesting that it has significantly decreased in value, which may raise concerns about its long-term viability.

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