Unveiling 19 Analyst Insights On Dollar Tree

19 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.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $86.42, along with a high estimate of $130.00 and a low estimate of $64.00. This current average represents a 35.96% decrease from the previous average price target of $134.94.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Dollar Tree among financial experts is revealed through an in-depth exploration 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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Dollar Tree's stock. This examination reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Dollar Tree's market position. Stay informed and make data-driven decisions with the assistance of 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 8,600 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.

A Deep Dive into Dollar Tree's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Dollar Tree's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 0.73%. This signifies a substantial increase in the company's 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: Dollar Tree's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 1.79%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Dollar Tree's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.8%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Dollar Tree's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.59%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Dollar Tree's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.46.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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