Dollar Tree Inc. (DLTR) shares are trading at higher $112.39 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $121.00.
To add more color to this target, the company’s high over the last year is $112.93 and the low is $60.20. Over the last 52 weeks, DLTR is up 25.62% while the S&P 500 is up 17.45%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, DLTR reported a profit of $1.92 billion. Dollar Tree Inc. also saw revenues increase to $6.18 billion. In addition, DLTR has free cash flow of $1.03 billion as of 10-2020. The company’s EBITDA came in at $636.6 million which compares well with its peers.
DLTR booked profit margins of 3.80%, its Return on Equity (ROE) is 14.50%, and its Return on Assets is 4.70%. All told, it is clear that, DLTR needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DLTR has a short ratio of 1.13 and outstanding shares of 236.80M.
DLTR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.9 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.05. Dollar Tree Inc. DLTR also noted assets of $20.65 billion at the end of the last quarter. Investors should also keep an eye on sector updates as DLTR has historically followed its peers on positive news.
All told, Dollar Tree Inc. DLTR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DLTR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Dollar Tree Inc. DLTR is now commanding a market cap of 26.87B and a float of 231.83M. DLTR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DLTR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in DLTR, either long or short, and we have not been compensated for this article.