What Analysts Are Saying About Dollar Tree Stock

Providing a diverse range of perspectives from bullish to bearish, 19 analysts have published ratings on Dollar Tree DLTR in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $86.42, with a high estimate of $130.00 and a low estimate of $64.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 35.96%.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils 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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Dollar Tree. This information provides a snapshot of how analysts perceive 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: Analysts navigate through adjustments in price targets, providing estimates for Dollar Tree's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

About Dollar Tree

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: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to 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 July, 2024, the company achieved a revenue growth rate of approximately 0.73%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Dollar Tree's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 1.79%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.8%, the company may need to address challenges in generating satisfactory returns for shareholders.

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 the industry average at 1.46, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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