Dollar Tree (DLTR, $97.34) tops Q2 earnings estimates
Dollar Tree reported fiscal-second-quarter earnings that surpassed analysts’ estimates.
For the quarter ended Aug. 1, the discount chain’s net income came in at $261.5 million, or $1.10 a share, compared with the year-ago quarter’s $180.3 million, or 76 cents. Analysts surveyed by FactSet had expected earnings of 92 cents a share.
Revenue rose to $6.28 billion from $5.74 billion, compared to analysts’ forecast of $6.22 billion.
Dollar Tree’s comparable sales grew +7.2%.
The company experienced a 1.8-percentage-point boost in gross-profit margin.
Tickeron's analysis shows DLTR in Uptrend: 50-day Moving Average broke above 200-day Moving Average on July 27, 2020
A buy signal is indicated by this change in price, due to the trend repositioning higher. In 2 of 2 cases where DLTR's 50-day Moving Average crossed above its 200-day Moving Average, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.
Current price $97.34 crossed the support line at $98.12 and is trading between $98.12 support and $95.75 resistance lines. Throughout the month of 07/27/20 - 08/26/20, the price experienced a +9% Uptrend. During the week of 08/19/20 - 08/26/20, the stock enjoyed a +5% Uptrend growth.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator exceeded the 0 level on August 07, 2020. Traders may consider buying the ticker or exploring call options. In 52 of 84 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 62%.
The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where DLTR's MACD histogram became positive, in 32 of 45 cases, the price rose further within the following month. The odds of a continued Uptrend are 71%.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DLTR advanced for three days, in 203 of 333 cases, the price rose further within the following month. The odds of a continued Uptrend are 61%.
The Aroon Indicator entered an Uptrend today. In 176 of 288 similar cases where DLTR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 61%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the ticker has entered the overbought zone. Expect a price pull-back in the near future.
The Stochastic Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 23 of 53 cases where DLTR's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 43%.
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 58%. During the last month, the daily ratio of advancing to declining volumes was 1.4 to 1.
The Tickeron Price Growth Rating for this company is 26 (best 1 - 100 worst), indicating outstanding price growth. DLTR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent 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 SMR rating for this company is 53 (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 Profit vs. Risk Rating rating for this company is 57 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 53, placing this stock slightly worse than average.
The Tickeron Valuation Rating of 71 (best 1 - 100 worst) indicates that the company is slightly 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 (3.79) is normal, around the industry mean (5.01). P/E Ratio (30.71) is within average values for comparable stocks, (31.02). Projected Growth (PEG Ratio) (0.15) is also within normal values, averaging (1.06). Dividend Yield (0.00) settles around the average of (1.29) among similar stocks. P/S Ratio (0.76) is also within normal values, averaging (1.16).
DLTR sees its 50-day moving average cross bullishly above its 200-day moving average
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.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where DLTR's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
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 .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 67 cases where DLTR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 59, placing this stock 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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than 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 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 (3.527) is normal, around the industry mean (56.851). P/E Ratio (22.989) is within average values for comparable stocks, (22.783). Projected Growth (PEG Ratio) (1.743) is also within normal values, averaging (1.952). Dividend Yield (0.000) settles around the average of (0.034) among similar stocks. P/S Ratio (1.105) is also within normal values, averaging (1.153).
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