Dollar Tree (DLTR) is a Fortune 500 company that operates 15,115 stores in the United States and Canada and has a market capitalization of $31.96 billion. Each store stocks a variety of products from different brands and the departments found in its outlets range from food and snacks, health and beauty products, household items, glassware, tableware, household cleaning, sweets, toys, gifts, gift bags and wraps, stationery. , craft supplies, educational supplies, automotive, electronics, pet supplies and books.

For 35 years, Dollar Tree has been worshiped for selling items strictly at $1, a price favorable to low-cost retailers and middle-income suburban shoppers, but its decision in September to start selling items at $1.25 $ and $1.50, especially after an activist investor took a stake in the company and pressured the chain to raise prices unsettled many of its loyal customers.

DLTR is expected to release its fourth quarter results on March 2 before the market opens. The report will be for the fiscal quarter ending January 2022. According to Zacks Investment Researchbased on the forecasts of 11 analysts, the Consensus EPS forecast for the quarter is $1.79. Reported EPS for the same quarter last year was $2.13. Revenue, based on a survey of 22 analysts by Yahoo Finance, is expected to be $7.12 billion. So far, DLTR has had positive earnings review activity and over the years, this activity has proven to be a strong indicator of positive surprise earnings nearly 70% of the time according to Zacks Investment Research.

The Price and EPS Surprise chart displays the company’s stock price along with the EPS surprise. Surprise EPS is the difference (expressed as a percentage) between actual quarterly earnings per share (EPS) and estimated quarterly EPS. Source: Zachs Investment research.

In the third fiscal quarter of 2021, the company’s revenue was 6.42 billion dollars (+3.90% year/year) and the net result was $216 million also during the same period, while earnings per share amounted to 0.96. It is important to note that Dollar Tree has never paid an annual dividend, but the total shareholder return for the past 12 months is 26%.

According to TipRanks, the DLTR price prediction and target based on 11 Wall Street analysts offering 12-month price targets for dollar tree over the past 3 months places the average price target at $167.10 with a high forecast of $181.00 and a low forecast of $147.00. The average price target represents a 17.61% change from the last price of $142.08. Overall, the stock has a strong buy consensus rating based on 9 buys, 2 holds and 0 sells.

LTRD price action has been in an overall uptrend on the daily timeframe chart, trading well above the 200 simple moving average (blue), after hitting a low of $83.64 printed on September 24 of last year and meeting resistance to $149.14 on Nov 22, 2021 before price consolidates in a 12-week bullish flag chart pattern and breaks out later. We also notice that the 20-period MA (green) is about to exceed the 50-period MA (red). The ADX reading below 25.00 indicates that the uptrend seems to have run out of steam and therefore confirms the bull flag. It will be interesting to see if the price will remain supported at $132.09 and $139.48 the upper bullish flag trendline, or continue to deposit, targeting $51.43. The resistance is at $149.34.

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