DLTR’s ratings versus peers
Dollar Tree Stores (DLTR) is covered by 26 Wall Street analysts. Together, they rate the company a 2.3 on a scale of 1.0 (“strong buy”) to 5.0 (“strong sell”).
Competitor Dollar General (DG) is rated a 2.4. As we saw in the previous two parts of this series, the two companies have similar YTD (year-to-date) stock returns and valuations. However, DLTR has a better earnings potential in the near term.
Variety store peers PriceSmart (PSMT) and TJX Companies (TJX) are rated 2.3 and 2.1, respectively. Supermarket giant Kroger (KR) and retail juggernaut Walmart (WMT) are rated 2.6 and 2.5, respectively.
Wall Street recommendations overview
About 38.0% of the analysts who cover DLTR have recommended a “hold” for the stock. Jefferies, Bernstein Research, and Atlantic Equities are among the brokers who have a “hold” recommendation for the stock.
About 58.0% of analysts recommend a “buy” for Dollar Tree stock. That compares to 45.0% “buy” ratings for Dollar General, 67.0% for PriceSmart, and 42.0% for Walmart. Raymond James, Loop Capital, and Gordon Haskett have set “buy” ratings for DLTR stock.
Only 4.0% of analysts suggest a “sell” for the stock. That compares to 3.0%, 0.0%, and 9.0% “sell” ratings for Dollar General, PriceSmart, and Walmart, respectively.
Investors looking for exposure to Dollar Tree through ETFs can consider the Consumer Discretionary Select Sector SPDR ETF (XLY), which invests 0.74% of its total holdings in the company.