Unveiling 21 Analyst Insights On Dollar Tree

Across the recent three months, 21 analysts have shared their insights on Dollar Tree DLTR, expressing a variety of opinions spanning from bullish to bearish.

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.

Analysts have recently evaluated Dollar Tree and provided 12-month price targets. The average target is $94.33, accompanied by a high estimate of $155.00 and a low estimate of $64.00. This current average has decreased by 31.25% from the previous average price target of $137.21.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Dollar Tree's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Dollar Tree. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Dollar Tree's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Dollar Tree's market standing. Stay informed and make data-driven 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 8,600 shops under its namesake banner and nearly 7,800 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's Economic Impact: An Analysis

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.

Positive Revenue Trend: Examining Dollar Tree's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.73% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 1.79%, the company may need to address challenges in 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 1.8%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Dollar Tree's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.59%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Dollar Tree's debt-to-equity ratio is below the industry average at 1.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

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.

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