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.