Dollar Tree Stores Inc. (DLTR): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Dollar Tree Stores (DLTR) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole was unchanged today. By the end of trading, Dollar Tree Stores fell 91 cents (-1.9%) to $48.38 on average volume. Throughout the day, 2.7 million shares of Dollar Tree Stores exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in price between $48.28-$49.41 after having opened the day at $49.37 as compared to the previous trading day's close of $49.29. Other companies within the Services sector that declined today were: LodgeNet Interactive Corporation (LNET), down 16.5%, Covenant Transportation Group (CVTI), down 11.1%, Digital Domain Media Group (DDMG), down 10.7%, and Corinthian Colleges (COCO), down 8.7%.

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Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00. Dollar Tree Stores has a market cap of $12.28 billion and is part of the retail industry. The company has a P/E ratio of 21.7, below the average retail industry P/E ratio of 25.1 and above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Dollar Tree Stores a buy, one analyst rates it a sell, and six rate it a hold.

TheStreet Ratings rates Dollar Tree Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

• You can view the full Dollar Tree Stores Ratings Report.

On the positive front, FreeSeas (FREE), up 20.7%, Cache (CACH), up 12.9%, Liberty Media Corp Class B (LVNTB), up 12.7%, and Cambium Learning Group (ABCD), up 10.7%, were all gainers within the services sector with Royal Caribbean Cruises (RCL) being today's featured services sector leader.

• Use our services section to find sector-relevant news.
• Or find some new ideas from our top rated stocks lists.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services (IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers (SCC).

• Find other investment ideas from our top rated ETFs lists.

For more information on Dollar Tree Stores Inc. click any of the following:

• Dollar Tree Stores Inc. Stock Price

• Dollar Tree Stores Inc. Analyst Ratings

• Dollar Tree Stores Inc. Key Stats & Profile

• Dollar Tree Stores Inc. Earnings

• Dollar Tree Stores Inc. Ratio Comparison

• Dollar Tree Stores Inc. Growth Rates

• Dollar Tree Stores Inc. Balance Sheet

• Dollar Tree Stores Inc. Cash Flow

• Dollar Tree Stores Inc. Income Statement