DLTR stock: buy or sell?

DLTR stock price: $85.30 -2.79% At close on February 27th, 2020

Updated on:
February 27th, 2020

1

Dollar Tree dropped a terrifying -2.79% and closed at $85.30. With Thursday it's been 4 red days in a row.

Dollar Tree, Inc. operates variety retail stores in the United States and Canada. It operates in two segments, Dollar Tree and Family Dollar.

Should I buy DLTR stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to define your own trading plan that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Dollar Tree stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Dollar Tree stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for DLTR stock for the last 30 days.

DLTR stock analysis

Daily outlook

Dollar Tree dropped a terrifying -2.79% and closed at $85.30.

Dollar Tree dropped a terrifying -2.79% and closed at $85.30. Since last November when DLTR stock price broke down the SMA200d line, it slid $-27.09 per share (-24.10%). On October, DLTR hit new all time highs, pushing higher previous ATH of $118.04 recorded on October. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

DLTR stock chart (daily)

Weekly outlook

After boosting an impressive 5.55% in a week last week, Dollar Tree closed this week at $85.30 and plummed a spooky -9.15%.

Since late November 2019, when DLTR stock price broke down the 40-weeks moving avarage line, it slid $-23.74 per share (-21.77%). Stocks under the 200 days moving average line are usually not recommended for average traders. Far behind is the all-time high Dollar Tree hit late October 2019 and since then the price is -28.74% below that top.

DLTR stock chart (weekly)

DLTR stock price history

DLTR IPO was on March 7th, 1995 at $1.12 per share1. Since then, DLTR stock surged a 7,516.10%, with a yearly average of 313.20%. If you had invested right after DLTR's IPO a $1,000 in DLTR stock in 1995, it would worth $75,161.00 today.

1: Adjusted price after possible price splits or reverse-splits.

DLTR stock historical price chart

DLTR stock reached all-time highs on October with a price of $119.71.

DLTR stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not detected any price prediction for Dollar Tree stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Dollar Tree was in line with the forecasts of the analysts and posted an EPS of $1.93 per share. As soon as we get its posted EPS from the earnings report, we will extend this review.
DLTR earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.98n/a
2017-Q3-n/a0.99n/a
2017-Q42018-03-071.91.89-0.5%
2018-Q12018-03-071.91.89-0.5%
2018-Q22018-05-311.231.19-3.3%
2018-Q32018-08-301.161.15-0.9%
2018-Q42018-11-291.151.182.6%
2019-Q12019-03-061.921.930.5%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2018, last anual turnover report draw a slightly good gain of 2.60% to $22,823.30 million USD. When comparing 2019 vs 2018, on the other hand, profit margin (that is, the net income divided by revenues) plummed a -14.68% to -6.97%.

DLTR annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$7,840 M-$597 M7.6%-
2014$8,600 M9.69%$599 M7.0%0.42%
2015$8,602 M0.03%$599 M7.0%0.00%
2015$15,500 M80.19%$282 M1.8%-52.87%
2016$15,498 M-0.01%$282 M1.8%0.00%
2016$20,720 M33.69%$896 M4.3%217.35%
2017$20,719 M0.00%$896 M4.3%0.00%
2017$22,250 M7.39%$1,710 M7.7%90.81%
2018$22,246 M-0.02%$1,714 M7.7%0.25%
2019$22,823 M2.60%$-1,590.80 M-7.0%-192.80%

Quarterly financial results

Dollar Tree posted $6,205.20 million in revenues for 2019-Q1, a 12.03% improvement compared to previous quarter. Reported quarter income marked $-2,307.00 million with a profit margin of -37.18%. Profit margin collapsed a -42.27% compared to previous quarter when profit margin was 5.09%. When comparing turnover to same quarter last year, Dollar Tree sales marked a bad slide and slightly fell a -2.44%. Looking back to recent quarterly results, Dollar Tree posted 2 positive quarters in a row.
DLTR quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$5,290 M-$200.50 M3.8%-
2017-Q3$5,280 M-0.19%$233.80 M4.4%16.61%
2017-Q4$5,317 M0.69%$239.90 M4.5%2.61%
2018-Q1$6,361 M19.64%$1,040.10 M16.4%333.56%
2018-Q2$5,554 M-12.69%$160.50 M2.9%-84.57%
2018-Q3$5,526 M-0.51%$273.90 M5.0%70.65%
2018-Q4$5,539 M0.24%$281.80 M5.1%2.88%
2019-Q1$6,205 M12.03%$-2,307.00 M-37.2%-918.67%

Dollar Tree ownership

When you are planning to invest in shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Dollar Tree, 1.45% of all outstanding shares are owned by its staff.

Bearish positions for DLTR stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related companies:

DLTR
Market cap$20.2 B
Total shares236.7 M
Float shares233.5 M
  - Institutional holdings (%)97.7%
  - Insider holdings (%)1.5%
Shares in short selling0.0%

DLTR summary

Thursday, February 27th, 2020
Open$86.76
Close$85.30
Day range$84.82 - $88.19
Previous close$87.75
Session gain-2.79%
Average true range$2.06
50d mov avg$90.35
100d mov avg$98.74
200d mov avg$101.68
Daily patternlt06c
Weekly pattern

Dollar Tree performance

To better understand Dollar Tree performance you must compare its gains with other related stocks in same sector or industry. We picked as the bechmarking frame for Dollar Tree stock.
Stock3m6m12m
DLTRDollar Tree-6.74%-15.99%-11.48%

Dollar Tree competitors

Unfortunately, we could not find any public company that could be defined as Dollar Tree competitor. This doesn't mean Dollar Tree does not have any competitor in the market, it's just we could not detected it.

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