Dollar Tree stock declined 3.3% despite positive company developments. The company raised its full-year earnings guidance, projecting comparable sales growth of 5% to 5.5% and adjusted EPS of $5.60 to $5.80. Third-quarter results showed comparable sales increased 4.2% with adjusted EPS of $1.21 exceeding prior guidance. The company is expanding into wealthier ZIP codes, with nearly half of new locations now in areas with median household incomes above local averages. High-income shoppers earning over $100,000 annually accounted for 60% of new customers last quarter. Analyst ratings remain mixed, with 24 covering firms providing an average "Hold" recommendation and a 12-month price target of $124.62. Rothschild upgraded the stock to Buy with a $165 target on February 17, while other analysts maintained lower price targets.
Read full analysisDollar Tree stock declined 3.3% despite positive company developments. The company raised its full-year earnings guidance, projecting comparable sales growth of 5% to 5.5% and adjusted EPS of $5.60 to $5.80. Third-quarter results showed comparable sales increased 4.2% with adjusted EPS of $1.21 exceeding prior guidance. The company is expanding into wealthier ZIP codes, with nearly half of new locations now in areas with median household incomes above local averages. High-income shoppers earning over $100,000 annually accounted for 60% of new customers last quarter. Analyst ratings remain mixed, with 24 covering firms providing an average "Hold" recommendation and a 12-month price target of $124.62. Rothschild upgraded the stock to Buy with a $165 target on February 17, while other analysts maintained lower price targets.
Dollar Tree is a North American discount retailer operating over 9,000 stores, offering consumables and discretionary items at price points from $1.25 to $7. The company has been expanding into wealthier ZIP codes, with shoppers earning over $100,000 accounting for 60% of its 3 million new customers last quarter. Its stock has gained roughly 79% over the past year, but the consensus analyst target of $124.62 now sits below the current share price, creating a valuation tension as the stock pulls back.