|Bid||0.00 x 800|
|Ask||0.00 x 1000|
|Day's range||86.07 - 87.35|
|52-week range||66.01 - 116.65|
|PE ratio (TTM)||12.27|
|Earnings date||22 Aug 2018 - 27 Aug 2018|
|Forward dividend & yield||N/A (N/A)|
|1y target est||103.92|
Insiders are buying big at discount retailer Dollar Tree (DLTR), according to InsiderInsights.com, a website that follows such activity. Similar activity at Dollar Tree in the past has been followed by a higher price about 12 months later. A recent spate of stock purchasing at the discount retailer totaling about $3 million is interesting both for its intensity and also for a reversal from selling in 2017, says Jonathan Moreland, director of research at the website. Dollar Tree didn’t return a request for comment by press time.
Dollar Tree (DLTR) loses luster after a dismal performance in first-quarter fiscal 2018. However, the company's ongoing integration of Family Dollar remains noteworthy.
In this final part of the series, we’ll look at Wall Street’s recommendations and current valuations of Kroger (KR). Kroger is covered by 26 Wall Street analysts, who have jointly rated the stock a 2.2 on a scale of 1.0 (strong buy) to 5.0 (sell).
As of June 11, 2018, Ollie’s Bargain Outlet Holdings (OLLI) was trading at a 12-month forward PE (price-to-earnings) ratio of 40.8x. Following the fiscal first-quarter results on June 5, the valuation multiple for Ollie’s Bargain Outlet has decreased 2.9%. Five Below (FIVE) and Big Lots (BIG) are trading at a 12-month forward PE ratio of 38.0x and 9.2x.
Dollar Tree (DLTR) and Dollar General (DG) have seen high volatility over the past year. Dollar General, which was trading at $94.90 as of June 8, has traded between the $65.97 and $105.82 over the last 12 months. Dollar Tree, now priced at $82.63, has been slightly more volatile. It moved within a 52-week range of $65.63–$116.50.
Discount retailer Ollie’s Bargain Outlet Holdings’ (OLLI) stock price has risen 39.2% this year to $74.15 as of June 11. In comparison, as of June 11, other discount store retailers Dollar Tree (DLTR) and Big Lots (BIG) are down 21.8% and ~22.9%, respectively. Founded in 1982, Ollie’s Bargain Outlet’s unique business model is its most compelling feature.
As we discussed in Part 2 of this series, both Dollar Tree (DLTR) and Dollar General (DG) recently faced some pressure on same-store sales due to harsh weather conditions. “Now, to the timing shift of the holiday and colder-than-normal-spring weather behind us, we have seen a pick-up in sales trends at both Dollar Tree and Family Dollar in May. It’s still early in the quarter, but it’s gotten off to a positive start for both banners,” said Gary Philbin, president and CEO of Dollar Tree.
As we outlined in the previous part of this series, Dollar Tree (DLTR) and Dollar General (DG) missed same-store sales expectations during the first quarter of 2018 due to cold weather. Dollar Tree’s adjusted earnings per share expanded 21.4% YoY or year-over-year to $1.19. Dollar General, in comparison, posted a stronger increase of 32% YoY in the bottom-line to $1.36.
Both Dollar General (DG) and Dollar Tree (DLTR) reported their first-quarter results on May 5. Both fell short of top- and bottom-line expectations. Let’s discuss the top-line performance in this part of our series and look at profitability in the next part. Dollar General’s top line
Dollar stores, which typically sells inexpensive items at a single price, usually follow a small-box format and sell everything from clothing to food to cleaning supplies. The stores are located in smaller localities that are too small for a bigger player like Walmart (WMT). Their target customers are typically lower- and middle-income families.
As of June 7, Five Below (FIVE) was trading at a 12-month forward PE multiple of 27.7x. A forward PE multiple is one of the most used ratios for making investment decisions by comparing companies in the same industry. Forward PE is calculated by dividing a stock price by analysts’ earnings estimates for the upcoming four quarters.
The shares of so-called dollar stores have suffered as U.S. shoppers have started spending more at bargain retailers with focused concepts and big discount chains. Once thought to be insulated from the retail industry's challenges, the dollar stores, which got the name because they try to price items for $1 or less, such as Dollar General Corp (DG.N), Dollar Tree Inc (DLTR.O) and Big Lots Inc (BIG.N) derive much of their sales from household staples. Appealing to trend-watchers and bargain hunters has helped Ollie's and Five Below stand out while other discounters face intensifying competition from new entrants such as German chains Aldi and Lidl, analysts and investors said.
Virginia-based discount variety retailer Dollar Tree (DLTR) announced its first-quarter results on May 31. Revenue rose 5.1% YoY (year-over-year) to $5.5 billion from $5.2 billion, while its EPS rose 21.4% YoY to $1.19. Revenue missed estimates by 0.1%, while EPS missed estimates by 3.0%, prompting several brokerages to reduce their target prices for the stock.
In this space last week, I recommended that investors buy Dollar Tree (DLTR) ahead of its earnings report. Dollar Tree reported a profit of $1.19 a share, below forecasts for $1.23, on sales of $5.55 billion, missing expectations for $5.56 billion. Shares of Dollar Tree tumbled 14%, to $82.59, last Thursday and continued to slide on Friday to $81.28.
The two biggest operators of dollar stores reported lackluster sales growth Thursday and pointed to higher freight and wage costs, sending their stocks sharply lower. Dollar General Corp. said sales at stores opened at least a year rose 2.1% in the quarter ended May 4, below the 3% growth expected by analysts polled by Consensus Metrix. Dollar Tree—whose brands include both Dollar Tree stores and Family Dollar locations—reported same-store sales growth of 1.4%, falling short of estimates for 2.3%.
Stocks that moved substantially or traded heavily Thursday: General Motors Co., up $4.87 to $42.70 Japanese technology conglomerate SoftBank is investing $2.25 billion in GM's autonomous car business. ...
Costco beat earnings views late Thursday. But shares fell after earlier hitting resistance at a buy point. Dollar Tree and Dollar General plunged on EPS shortfalls.
For the second quarter, it expects to EPS between 27 cents and 29 cents , compared with the 25-cents consensus estimate. CFRA's Victor Ahluwalia reiterated a Hold rating on the shares, although he raised his price target by $2, to $25.
Consumers have more money to spend, so they can travel to stores that offer the best prices. That dynamic helps explain the poor first-quarter performance of the two major dollar-store chains.
Weak Results and Disappointing Guidance Drag Dollar Tree DownDollar Tree fails to meet first-quarter expectations