This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Well-Rooted Retail Investment

Stocks in this article: WAL DLTR

I would rather own a stock that is hitting new highs than one that is going down.

I would rather own a stock that is hitting new highs that one that is hitting new lows!

This is where valuation comes into play.

Data from Best Stocks Now App

Dollar Tree is currently trading at 17 times forward earnings, which is a slight discount to the market. It's expected to grow those earnings by 17%, so it has a PEG ratio of 1.01.

All things equal, you should get 17% per year in returns on DLTR going forward. It's simple math, but that doesn't necessarily mean there's a guarantee. You still have to babysit that holding every day to make sure it's staying on track.

Now every once in a while, the stock is going to be derailed a little bit. But as long as it stays on course, stay with it. You want big gains in the market. If it goes, of course, you sell.

Dollar Tree is currently a stock that is exhibiting to those of Wal-Mart many years ago.

Stock Chart

So would I buy a stock that is hitting a new all-time high? So far we've discussed the performance and valuation of DLTR, but the last part is checking that stock chart.

Courtesy of

Wednesday, DLTR broke out to a new all-time high. If the valuation justifies it, and in DLTR's case it does, I would absolutely buy a stock that's hitting a new high.

So, it's your choice -- you could own a big, stodgy, old stock of yesteryear, or you could drop down a notch into the second or third tier and shop around the aisles of the stock market that still offer big potential.

DLTR comes in at #83 out of 3,546 stocks. Clients of Gunderson Capital Management are currently long the stock.

Data from Best Stocks Now App

At the time of publication, Gunderson was long DLTR.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs