Buy, Sell or Hold: Dollar Tree (DLTR-Q) — Stock Predictions at Stockchase

NASDAQ:DLTR

85.25

1.01 (1.17%) 1d

Showing 1 to 15 of 51 entries

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TOP PICK

Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of DLTR as a TOP PICK. It trades at 14x earnings, compared to peers at 20x. Currently it is valued at under 3x book value. It has drawn down cash reserves somewhat, but by buying back $1.3 billion of stock and $800 million in debt it has shored up the balance sheet. We would buy this with a stop loss at $80, looking to achieve $109 -- upside potential over 22%. Yield 0% (Analysts’ price target is $109.14)

merchandising / lodging

PARTIAL BUY

The dollar stores as a whole are suffering from expensive freight costs and supply constraints. DT is introducing products above $1 and have lessened their forecast given higher costs. DT has been rolling out higher price points, which is good, and offering a wider selection in American rural areas. Its 16x forward earnings valuation is far better than Dollarama's 24x forward earnings. Expect higher operating costs for 6 months until the shipping and supply problems are solved.

merchandising / lodging

BUY

Dollar Tree and DOL outlooks These stores did well during the lockdown. Soft share prices lately are due to return-to-work. DT is a little cheaper at 14x PE with a recent earnings beat and recently had an earnings beat. But DT has weak price momentum. DOL has outperformed, offers a good PE and had a good earnings beat. DOL has better price momentum. DOL isn't cheap at 30x PE, but it's okay; low volatility. Both stocks are similar overall. Dollar Tree and DOL outlooks

merchandising / lodging

TOP PICK

After years of under-performing he thinks this is going to reverse. They are finally exploring raising prices beyond $1. They are just starting to execute. (Analysts’ price target is $117.76)

merchandising / lodging

TOP PICK

Has 15,000 stores in two brands. New managers will remodel stores, introduce multiple price points and new combo stores. This strategy under a new CEO will raise same-store sales growth, benefit EPS and improve margins over 3-5 years. DOL's multi-price strategy worked, so it should work for DLTR. He sees 30% upside. (Analysts’ price target is $118.48)

merchandising / lodging

PAST TOP PICK

(A Top Pick Jul 08/20, Up 11%) He's still buying it. It pulled back earlier this year due to higher freight costs so they lowered their guidance, but the growth outlook is phenomenal. Their stores perform very well, and they're trying more products above $1. They can do well in a good or bad economy. Resilient.

merchandising / lodging

BUY

Sell Costco to buy DLTR? Costco is very well run, but their challenge is always growth. And their forward PE is 35x, which is high. Whereas DLTR trades at 17x, driven by growth and expansion. Long-term, DLTR has earnings growth and multiple expansion and a better total return over 5-7 years than Costco.

merchandising / lodging

BUY

It got hit with two sells this past week, but they will benefit from the forthcoming big stimulus package and stimulus spending. They report Wednesday. He likes their stores and it's come down enough.

merchandising / lodging

DON'T BUY

DLTR vs. DG Likes the dollar store trade in general. Prefers DG, as it benefits from being in rural areas, away from the Targets and Walmarts. DLTR has a lot of urban competition. In the next 3-5 years, he prefers DG.

merchandising / lodging

PAST TOP PICK

(A Top Pick Jan 14/20, Up 20%) She likes their positioning in this space. Family dollar offers multiple price points in their stores. Recently they have been introducing these formats into their own stores. This caused basket sizes to increase. Coming out of this recession there will still be a slow recovery and a certain portion of the population will gravitate to these stores for economic reasons so she would continue to hold it.

merchandising / lodging

TOP PICK

Has had some short term weakness due to their banner integration with Family Dollar. Insulated from online competition. Has a good growth profile. He would set the buy price around 18.5x forward earnings. (Analysts’ price target is $121.92)

merchandising / lodging

PAST TOP PICK

(A Top Pick Dec 12/19, Up 16%) She would buy it again. They are reformatting some of the stores and this improves basket size. It trades at a discount to Dollar General and Dollarama.

merchandising / lodging

DON'T BUY

Plays well into what's happening with the pandemic and changes in consumer behaviour. Prefers Dollar General, as it's in rural areas, with no Walmarts or Costcos. DLTR has lots of competition in the city and its latest acquisition hasn't worked out well. 9% earnings growth rate, while Dollar General has 13-14% earnings growth rate.

merchandising / lodging

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TOP PICK

Stockchase Research Editor: Michael O'Reilly DLTR has seen its fair share of volatility lately, but the market fundamentals are once again moving in its favour. As the economy is about to face another wave of the pandemic folks will be likely be tempered in their spending and this benefits the company. Ahead of the season's demand rush, the company has hired 25,000 employees showing their outlook for sales ahead. Moody's just upgraded their credit rating based on their ability to boost cash flow during the pandemic and double-digit same store sales growth. It is also relatively cheap compared to DG, who has a PE of 20 versus 15 for DLTR. We would trade this with a $73 stop-loss. Yield 0% (Analysts’ price target is $108.17)

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TOP PICK

Whether we see a vaccine or not in the next quarter or two, the economy won't snap back to pre-Covid levels overnight. Consumers will continue to watch their pennies. DG is the dominant player in the American dollar store space. DG gets the edge against its competitors, because of its locations in sparse, rural areas as opposed to cities, in the the age of social distancing. Two-thirds of Americans still live within five miles of a DG location. (In Canada, Dollarama has many locales inside malls, which consumers continue to shy away from.) You're not buying this for its 0.69% dividend but for growth (it can add hundreds of stores in coming years), and its 0.7x beta. Ultimately, this is a defensive play; 80% of what they sell are consumer staples. Its August earnings report saw an EPS beat of $3.12 vs. the expected $2.47, while earnings soared 92% YOY. Same-store sales rose 15%. It's one company that continues to buy back shares, at least till next January. Another one that'll let you sleep at night.

merchandising / lodging

Showing 1 to 15 of 51 entries

Dollar Tree(DLTR-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 9

Stockchase rating for Dollar Tree is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Dollar Tree(DLTR-Q) Frequently Asked Questions

What is Dollar Tree stock symbol?

Dollar Tree is a American stock, trading under the symbol DLTR-Q on the NASDAQ (DLTR). It is usually referred to as NASDAQ:DLTR or DLTR-Q

Is Dollar Tree a buy or a sell?

In the last year, 9 stock analysts published opinions about DLTR-Q. 7 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Dollar Tree.

Is Dollar Tree a good investment or a top pick?

Dollar Tree was recommended as a Top Pick by on . Read the latest stock experts ratings for Dollar Tree.

Why is Dollar Tree stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Dollar Tree worth watching?

9 stock analysts on Stockchase covered Dollar Tree In the last year. It is a trending stock that is worth watching.

What is Dollar Tree stock price?

On 2021-09-22, Dollar Tree (DLTR-Q) stock closed at a price of $85.25.

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