Dollar Tree’s stock performance in 2017
Dollar Tree Stores’ (DLTR) robust growth strategy, solid comparable sales growth, and the ongoing integration with Family Dollar have boosted its stock in 2017. The discount retailer rose ~40% during the year, outperforming most competitors.
In comparison, Dollar General (DG), TJX Companies (TJX), and Costco (COST) rose 26%, 2%, and 21%, respectively. Kroger (KR) and Target (TGT) fell 20% and 10%, respectively, during the year. Walmart (WMT) was also among the better-performing retailers in 2017. It rose a massive 43% during the year.
How has DLTR performed so far in 2018?
Dollar Tree has continued its solid performance into 2018. The discount retailer has already risen 7% during the first two weeks of the new year as of January 12, 2018.
The company hit a 52-week high of $115.05 on January 12, 2018, although it closed at $114.84. A positive stance by Guggenheim and the recent wage increase announcement by Walmart were the probable reasons behind this momentum.
A surge in Dollar Tree’s share price has also driven its valuations higher. The retailer is trading at the upper end of its 52-week one-year forward PE (price-to-earnings) ratio. It’s currently valued at 21.1x compared to its three-year average of 20.3x.
It’s trading at a slight premium to close competitor Dollar General, which is valued at 19.6x.
About Dollar Tree
Dollar Tree is among the top discount store chains in the United States. The Chesapeake-based retailer operates about 15,000 stores in the United States and Canada under the Dollar Tree and Family Dollar banners.
The company is included in the Fortune 200 list. Investors looking for exposure to Dollar Tree through ETFs can consider the iShares Morningstar Mid-Cap Growth (JKH), which invests 1.4% of its total holdings in the company.