What Analysts Are Saying About Dollar Tree Stock

13 analysts have shared their evaluations of Dollar Tree DLTR during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Dollar Tree, presenting an average target of $140.23, a high estimate of $160.00, and a low estimate of $122.00. Experiencing a 0.01% decline, the current average is now lower than the previous average price target of $140.25.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Dollar Tree by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Dollar Tree. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Dollar Tree's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Dollar Tree's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Dollar Tree analyst ratings.

Discovering Dollar Tree: A Closer Look

Dollar Tree operates discount stores across the United States and Canada, with over 8,200 shops under its namesake banner and 8,350 under Family Dollar. About 45% of Dollar Tree's sales in fiscal 2022 were composed of consumables (including food, health and beauty, and cleaning products), nearly 50% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (nearly 80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.

Dollar Tree's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Dollar Tree's revenue growth over a period of 3 months has been noteworthy. As of 31 October, 2023, the company achieved a revenue growth rate of approximately 5.4%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.9%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Dollar Tree's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.35%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Dollar Tree's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.89%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Dollar Tree's debt-to-equity ratio is below the industry average at 1.19, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.