Don't Take a Position in Dollar Tree Stocks Without Knowing Its Fundamentals!

By Harris Dyer • Wednesday, December 20 15:49 • Permanent Link

Large-cap Consumer Discretionary company Dollar Tree has moved 0.7% so far today on a volume of 2,037,954, compared to its average of 2,364,184. In contrast, the S&P 500 index moved -1.0%.

Dollar Tree trades -9.08% away from its average analyst target price of $148.0 per share. The 23 analysts following the stock have set target prices ranging from $105.0 to $195.0, and on average have given Dollar Tree a rating of buy.

Anyone interested in buying DLTR should be aware of the facts below:

Dollar Tree's current price is 66.1% above its Graham number of $81.02, which implies that at its current valuation it does not offer a margin of safety
Dollar Tree has moved -4.7% over the last year, and the S&P 500 logged a change of 22.9%
Based on its trailing earnings per share of 5.26, Dollar Tree has a trailing 12 month Price to Earnings (P/E) ratio of 25.6 while the S&P 500 average is 15.97
DLTR has a forward P/E ratio of 19.2 based on its forward 12 month price to earnings (EPS) of $7.02 per share
The company has a price to earnings growth (PEG) ratio of 9.15 — a number near or below 1 signifying that Dollar Tree is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 3.26 compared to its sector average of 4.24
Dollar Tree, Inc. operates discount variety retail stores.
Based in Chesapeake, the company has 65,025 full time employees and a market cap of $29.32 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.