A Glimpse Into The Expert Outlook On Dollar Tree Through 16 Analysts

In the preceding three months, 16 analysts have released ratings for Dollar Tree DLTR, presenting a wide array of perspectives from bullish to bearish.

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 have recently evaluated Dollar Tree and provided 12-month price targets. The average target is $78.81, accompanied by a high estimate of $100.00 and a low estimate of $65.00. Experiencing a 0.78% decline, the current average is now lower than the previous average price target of $79.43.

Diving into Analyst Ratings: An In-Depth Exploration

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 insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Dollar Tree compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Dollar Tree's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Dollar Tree's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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.

Key Indicators: Dollar Tree's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Dollar Tree's remarkable performance in 3 months is evident. As of 31 October, 2024, the company achieved an impressive revenue growth rate of 3.46%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower 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 3.08%, 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 3.11%, the company may encounter challenges in delivering 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 1.02%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.38.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and 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.