Dollar Tree Stores (DLTR) Reaches New Lifetime High Today
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Dollar Tree Stores as such a stock due to the following factors:
- DLTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $231.3 million.
- DLTR has traded 21,155 shares today.
- DLTR is trading at a new lifetime high.
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More details on DLTR:
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00. DLTR has a PE ratio of 358.3. Currently there are 9 analysts that rate Dollar Tree Stores a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for Dollar Tree Stores has been 3.5 million shares per day over the past 30 days. Dollar Tree Stores has a market cap of $16.2 billion and is part of the services sector and retail industry. The stock has a beta of 0.83 and a short float of 6.7% with 4.77 days to cover. Shares are up 14.9% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Dollar Tree Stores as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- DLTR's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
- 39.28% is the gross profit margin for DOLLAR TREE INC which we consider to be strong. It has increased from the same quarter the previous year.
- Net operating cash flow has increased to $538.30 million or 26.15% when compared to the same quarter last year. In addition, DOLLAR TREE INC has also modestly surpassed the industry average cash flow growth rate of 24.96%.
- DOLLAR TREE INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DOLLAR TREE INC increased its bottom line by earning $2.90 versus $2.75 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $2.90).
- You can view the full Dollar Tree Stores Ratings Report.
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