NEW YORK (TheStreet) -- Shares of Dollar Tree  (DLTR) were popping by 8.57% to $89.02 in mid-afternoon trading on Tuesday, after the discount store reported 2016 third quarter earnings that beat expectations. 

Before today's opening bell, Dollar Tree reported earnings of 81 cents per share, beating Wall Street estimates of 78 cents per share. Revenue rose 1.1% year-over-year to $5 billion, but missed expectations of $5.06 billion. 

"Strong profits" and "expense controls" are what stands out from these results, rather than the sales number, Ritholtz Wealth Management Josh Brown said on CNBC's "Halftime Portfolio" today. "They're looking at this stock in terms of what they actually just produced on those profits. The expense controls obviously a big factor there."

The stock trades at an "incredibly high multiple" right now though, so you shouldn't "chase this name," even though it is taking some market share from Walmart (WMT), he advised. 

Instead, investors should look into buying shares of Ross (ROST), Brown said. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings team rates Dollar Tree as a Buy with a ratings score of B. This is driven by several positive factors, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks that the team covers.

You can view the full analysis from the report here: DLTR

DLTR Chart DLTR data by YCharts

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