Providing a diverse range of perspectives from bullish to bearish, 21 analysts have published ratings on Dollar Tree (NASDAQ: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.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 3 | 14 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 3 | 0 | 0 |
| 2M Ago | 0 | 0 | 2 | 0 | 0 |
| 3M Ago | 4 | 3 | 8 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $82.67, a high estimate of $120.00, and a low estimate of $64.00. This current average represents a 31.27% decrease from the previous average price target of $120.28.
Analyzing Analyst Ratings: A Detailed Breakdown
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $92.00 | $94.00 |
| Kelly Bania | BMO Capital | Lowers | Market Perform | $65.00 | $68.00 |
| Matthew Boss | JP Morgan | Raises | Neutral | $82.00 | $70.00 |
| Joseph Feldman | Telsey Advisory Group | Lowers | Market Perform | $75.00 | $95.00 |
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $100.00 | $105.00 |
| Brandon Fletcher | Bernstein | Announces | Market Perform | $76.00 | - |
| Karen Short | Melius Research | Announces | Hold | $70.00 | - |
| Kate McShane | Goldman Sachs | Lowers | Buy | $90.00 | $145.00 |
| John Heinbockel | Guggenheim | Lowers | Buy | $120.00 | $150.00 |
| Joseph Feldman | Telsey Advisory Group | Lowers | Outperform | $95.00 | $120.00 |
| Paul Lejuez | Citigroup | Lowers | Neutral | $64.00 | $120.00 |
| Edward Kelly | Wells Fargo | Lowers | Overweight | $100.00 | $130.00 |
| Bradley Thomas | Keybanc | Lowers | Overweight | $84.00 | $145.00 |
| Kelly Bania | BMO Capital | Lowers | Market Perform | $68.00 | $130.00 |
| Seth Sigman | Barclays | Lowers | Equal-Weight | $81.00 | $128.00 |
| Scot Ciccarelli | Truist Securities | Lowers | Buy | $79.00 | $140.00 |
| Peter Keith | Piper Sandler | Lowers | Neutral | $67.00 | $112.00 |
| Michael Lasser | UBS | Lowers | Buy | $105.00 | $155.00 |
| Greg Melich | Evercore ISI Group | Lowers | In-Line | $78.00 | $128.00 |
| Simeon Gutman | Morgan Stanley | Lowers | Equal-Weight | $80.00 | $130.00 |
| Anthony Chukumba | Loop Capital | Announces | Hold | $65.00 | - |
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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Dollar Tree compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
For valuable insights into Dollar Tree's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Dollar Tree analyst ratings.
Discovering Dollar Tree: A Closer Look
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 Financial Performance
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. 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 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): Dollar Tree's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.8%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Dollar Tree's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.59%, the company may face hurdles in achieving optimal financial returns.
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 Significance of Analyst Ratings Explained
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
Breaking: Wall Street's Next Big Mover
Benzinga's #1 analyst just identified a stock poised for explosive growth. This under-the-radar company could surge 200%+ as major market shifts unfold. Click here for urgent details.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
