Dollar Tree (DLTR, $80.08) beats Q4 earnings estimate; but misses same-store sales expectation
Dollar Tree Inc. reported fourth quarter earnings that came in higher than expected. However, it missed same-store sales growth estimates.
The discount retailer’s adjusted earnings for the three months ending on February 1 came in at $1.79 per share, 4 cents ahead of the Street expectations. The figure, however, is -7.25% lower than the year-ago quarter.
Group net sales increased +1.8% year-over-year to $6.32 billion in the quarter, but fell short of analysts' estimates of a $6.385 billion.
Same store sales rose +0.4% , falling behind analysts’ estimate of +1.7% (Refinitiv survey).
For the full-year, Dollar Tree projects sales in the range of $24.2 billion to $24.66 billion, and earnings of between $4.80 to $5.15 per share
DLTR in downward trend: 10-day moving average crossed below 50-day moving average on June 01, 2023
The 10-day moving average for DLTR crossed bearishly below the 50-day moving average on June 01, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 25, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DLTR as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DLTR turned negative on May 23, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at .
DLTR moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DLTR declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for DLTR's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for DLTR moved above the 200-day moving average on May 19, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DLTR advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
DLTR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 262 cases where DLTR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 58, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DLTR’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.309) is normal, around the industry mean (56.962). P/E Ratio (21.598) is within average values for comparable stocks, (23.074). Projected Growth (PEG Ratio) (1.776) is also within normal values, averaging (1.962). Dividend Yield (0.000) settles around the average of (0.033) among similar stocks. P/S Ratio (1.036) is also within normal values, averaging (1.153).
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of discount variety stores
Industry DiscountStores
DLTR and
Correlation & Price change
A.I.dvisor indicates that over the last year, DLTR has been loosely correlated with DG. These tickers have moved in lockstep 48% of the time. This A.I.-generated data suggests there is some statistical probability that if DLTR jumps, then DG could also see price increases.
| Ticker / NAME | Correlation To DLTR | 1D Price Change % | ||
|---|---|---|---|---|
| DLTR | 100% | -2.52% | ||
| DG - DLTR | 48% Loosely correlated | -4.36% | ||
| WMT - DLTR | 43% Loosely correlated | +0.66% | ||
| TGT - DLTR | 43% Loosely correlated | -1.97% | ||
| OLLI - DLTR | 38% Loosely correlated | +2.84% | ||
| BIG - DLTR | 37% Loosely correlated | -2.80% | ||
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