Navigating 13 Analyst Ratings For Dollar Tree

Ratings for Dollar Tree DLTR were provided by 13 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $141.69, along with a high estimate of $160.00 and a low estimate of $112.00. This current average has decreased by 8.78% from the previous average price target of $155.33.

Exploring Analyst Ratings: An In-Depth Overview

In examining recent analyst actions, we gain insights into how financial experts perceive Dollar Tree. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Dollar Tree. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Dollar Tree's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Capture valuable insights into Dollar Tree's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Dollar Tree analyst ratings.

Get to Know Dollar Tree Better

Dollar Tree operates discount stores across the United States and Canada, with over 8,500 shops under its namesake banner and nearly 7,900 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% 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 (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: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Dollar Tree displayed positive results in 3 months. As of 30 April, 2024, the company achieved a solid revenue growth rate of approximately 4.22%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Dollar Tree's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 3.93%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Dollar Tree's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.1%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Dollar Tree's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.36% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.42.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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