Dollar Tree, Inc. operates retail discount stores. The company operates in two segments, Dollar Tree and Family Dollar. The Dollar Tree segment offers merchandise at the fixed price of $ 1.25. It provides consumable merchandise, which includes everyday consumables, such as household paper and chemicals, food, candy, health, personal care products, and frozen and refrigerated food; variety merchandise comprising toys, durable housewares, gifts, stationery, party goods, greeting cards, softlines, arts and crafts supplies, and other items; and seasonal goods that include Christmas, Easter, Halloween, and Valentine's Day merchandise. It operates stores under the Dollar Tree and Dollar Tree Canada brands, as well as distribution centers in the United States and Canada. The Family Dollar segment operates general merchandise retail discount stores that offer consumable merchandise, which comprise food and beverages, tobacco, health and personal care, household chemicals, paper products, hardware and automotive supplies, diapers, batteries, and pet food and supplies; and home products, including housewares, home décor, and giftware, as well as domestics, such as comforters, sheets, and towels. It also provides apparel and accessories merchandise comprising clothing, fashion accessories, and shoes; and seasonal and electronics merchandise that include Christmas, Easter, Halloween, and Valentine's Day merchandise, as well as personal electronics, which comprise pre-paid cellular phones and services, stationery and school supplies, and toys. Dollar Tree, Inc. was founded in 1986 and is based in Chesapeake, Virginia.

Dollar Tree, Inc.

Target (TGT) came out with quarterly earnings of $2.05 per share, missing the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.57 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -1.91%. A quarter ago, it was expected that this retailer would post earnings of $1.62 per share when it actually produced earnings of $1.3, delivering a surprise of -19.75%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Target, which belongs to the Zacks Retail - Discount Stores industry, posted revenues of $25.21 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 1.20%. This compares to year-ago revenues of $25.45 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Target shares have lost about 22.1% since the beginning of the year versus the S&P 500's gain of 9%.
What's Next for Target?
While Target has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Target was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.80 on $25.34 billion in revenues for the coming quarter and $7.48 on $104.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Discount Stores is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Dollar Tree (DLTR), has yet to report results for the quarter ended July 2025. The results are expected to be released on September 3.
This discount retailer is expected to post quarterly earnings of $0.37 per share in its upcoming report, which represents a year-over-year change of -44.8%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Dollar Tree's revenues are expected to be $4.45 billion, down 39.7% from the year-ago quarter.
Should You Invest in Target Corporation (TGT)?
Before you invest in Target Corporation (TGT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Target (TGT) Q2 Earnings Lag Estimates

The U.S. retail sector has struggled over the past couple of years, but it has attempted to maintain its position. Retail sales jumped in June despite price pressures and the impact of President Donald Trump’s tariffs.
The robust jump in June suggests that the economy is still holding strong, which will give the Federal Reserve reasons to delay its rate cuts. Given this situation, it would be ideal to invest in retail stocks. We have selected five, namely, Amazon.com, Inc. AMZN, Dollar Tree, Inc. DLTR, Advance Auto Parts, Inc. AAP, Casey's General Stores, Inc. CASY and Levi Strauss & Co. LEVI for investors.
These stocks have seen positive earnings estimate revisions in the past 60 days, carry a Zacks Rank #1 (Strong Buy) or 2 (Buy), and are set for solid returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Retail Sales Rebound
Retail sales totaled $720.1 billion in June, jumping a solid 0.6% month over month, after declining 0.9% in May. June’s figures also surpassed analysts’ expectations of a rise of 0.1%. Year over year, retail rose 3.9% in June.
Sales were driven by a rise in auto dealerships, with receipts jumping 1.2%. Sales at building material garden equipment stores rose 0.9% last month. Online retail sales jumped 0.4%, while those at sporting goods, hobby and book stores grew 0.2%.
Sales at food and drinking places, the only services component in the retail sales report, rose 0.6% in June. Economists view restaurant sales as a key indicator of household finances.
Retail Sales to Grow
The robust jump in June proves that consumers are not hesitant to spend despite price pressures. Trump’s tariffs have already been showing their impact, with prices of goods increasing at a steady pace.
Although tariff-driven price increases played a role in pushing retail sales higher in June, the jump will give the Federal Reserve cover to keep its interest rates unchanged in the range of 4.25-4.5% in its July meeting.
However, market participants remain confident that more trade deals between the United States and its trading partners will be reached before the Aug. 1 tariff deadline and the impact will not be as great as it is being feared once they finally come into effect.
Also, the Federal Reserve, despite maintaining a hawkish stance, still plans to go for two 25-basis-point rate cuts by the end of this year. Lower borrowing rates bode well for the retail sector and the broader economy.
5 Retail Stocks With Growth Potential
Amazon.com, Inc.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program, well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.
Amazon.com has an expected earnings growth rate of 13.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 60 days. AMZN presently sports a Zacks Rank #1.
Dollar Tree
Dollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR’s stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree’s expected earnings growth rate for the current year is 7.8%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 3.8% over the past 60 days. DLTR has a Zacks Rank #2.
Advance Auto Parts, Inc.
Advance Auto Parts, Inc. is primarily engaged in selling replacement parts (excluding tires), accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, light and heavy-duty trucks. AAP is a leading automotive parts provider in North America, serving both do-it-yourself and professional installers, as well as independently owned operators.
Advance Auto Parts’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for Advance Auto Parts’ current-year earnings has improved 19.5% over the past 60 days. AAP has a Zacks Rank #2.
Casey's General Stores
Casey's General Stores, Inc. operates convenience stores under the Casey's and Casey's General Store names in 16 states, mainly Iowa, Missouri and Illinois. CASY offers a comprehensive range of products and services to meet the needs of its customers. In addition to fuel, the stores provide a wide variety of merchandise, including groceries, prepared food, snacks, beverages, tobacco products, health and beauty aids, school supplies, housewares, pet supplies and automotive supplies.
Casey’s has an expected earnings growth rate of 7.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 60 days. CASY currently has a Zacks Rank #2.
Levi Strauss & Co
Levi Strauss & Co. designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's, Dockers, Signature by Levi Strauss & Co. and Denizen brands. LEVI’s products are sold through chain retailers, department stores, online sites and brand-dedicated retail stores, and shop-in-shops. Levi Strauss & Co. is based in San Francisco.
Levi Strauss & Co.’s expected earnings growth rate for the current year is 4%. The Zacks Consensus Estimate for current-year earnings has improved 5.7% over the past 60 days. LEVI carries a Zacks Rank #1.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

5 Stocks to Buy on Solid Rebound in Retail Sales Amid Price Pressures

The S&P 500 Index ($SPX) (SPY) Monday closed up +0.14%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.50%. September E-mini S&P futures (ESU25) rose +0.19%, and September E-mini Nasdaq futures (NQU25) rose +0.54%.
Stock indexes mainly settled higher on Monday, with the S&P 500 and Nasdaq 100 posting new all-time highs. Stocks found support as the 10-year T-note yield fell by -5 bp to a one-week low of 4.37%. Also, the strength in chip stocks on Monday boosted technology stocks and led the broader market higher. On the negative side, natural gas producers retreated Monday after nat-gas futures fell more than -6% to a 1-week low.
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Some favorable corporate news supported gains in stocks on Monday. Block rose more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday. Also, Verizon Communications rose more than +4% after raising the lower end of its full-year earnings forecast.
Recent trade news has put some downward pressure on stocks. Last Wednesday, President Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1. Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. On Wednesday, June existing home sales are expected to fall -0.7% m/m to 4.00 million. On Thursday, weekly initial unemployment claims are expected to climb by +6,000 to 227,000. Also, the July S&P US manufacturing PMI is expected to slip -0.4 to 52.5. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 3% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are awaiting a heavy slate of quarterly corporate earnings results this week, including Alphabet and Tesla on Wednesday. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets on Monday settled mixed. The Euro Stoxx 50 closed down -0.30%. China's Shanghai Composite rallied to a 9.5-month high and closed up +0.72%. Japan's Nikkei Stock 225 was closed today for the Marine Day holiday.
Interest Rates
September 10-year T-notes (ZNU25) on Monday closed up +13 ticks. The 10-year T-note yield fell -4.4 bp to 4.372%. Sep T-notes rose to a 1-week high on Monday, and the 10-year T-note yield fell to a 1-week low of 4.350%. T-notes rallied Monday on carryover support from last Friday when Fed Governor Christopher Waller said he backs a Fed rate cut at the July 29-30 FOMC meeting. T-notes also have carryover support from Monday's rally in 10-year German bunds to a 2-week high.
European government bond yields on Monday moved lower. The 10-year German bund yield fell to a 2-week low of 2.611% and finished down -8.2 bp to 2.613%. The 10-year UK gilt yield fell -7.1 bp to 4.603%.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at Thursday's policy meeting.
US Stock Movers
Strength in chip stocks on Monday supported gains in the broader market. ARM Holdings Plc (ARM) closed up more than +3% to lead gainers in the Nasdaq 100. Also, Qualcomm (QCOM) closed up more than +2%. In addition, NXP Semiconductors NV (NXPI), Broadcom (AVGO), Lam Research (LRCX), and Applied Materials (AMAT) closed up more than +1%.
Block (XYZ) closed up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday.
Verizon Communications (VZ) closed up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials after raising the lower end of its full-year earnings forecast to +1% to 3% from a previous estimate of 0% to +3%.
Pinterest (PINS) closed up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $45.
Dollar Tree (DLTR) closed up more than +2% after Barclays upgraded the stock to overweight from equal weight with a price target of $120.
Equinix Inc. (EQIX) closed up more than +1% after Elliot Investment Management said it has built up a stake in the company in an effort to get it to take steps to boost its share price.
Invesco Ltd (IVZ) closed up more than +1% after TD Cowen upgraded the stock to buy from hold with a price target of $25.
Natural gas producers retreated Monday after nat-gas futures (NQQ25) plunged more than -6% to a 1-week low. As a result, EQT Corp (EQT) closed down more than -9% to lead losers in the S&P 500. Also, Antero Resources (AR) closed down more than -10%, Expand Energy (EXE) closed down more than -8%, Cheniere Energy (LNG) closed down more than -7%, and Coterra Energy (CTRA) closed down more than -5%.
Sarepta Therapeutics (SRPT) closed down more than -5% after it refused to pause all shipments of its Elevidys treatment after three deaths were linked to the company's gene therapies.
Molina Healthcare (MOH) closed down more than -3% after TD Cowen cut its price target on the stock to $283 from $369.
American Express (AXP) closed down more than -1% to lead losers in the Dow Jones Industrials after issuing $4 billion in debt securities due in four and seven years.
Biogen (BIIB) closed down more than -1% after Truist Securities downgraded the stock to hold from buy.
Centene (CNC) closed down more than -1% after TD Cowen downgraded the stock to hold from buy.
Earnings Reports (7/22/2025)
Avery Dennison Corp (AVY), Baker Hughes Co (BKR), Capital One Financial Corp (COF), Chubb Ltd (CB), Coca-Cola Co/The (KO), CoStar Group Inc (CSGP), Danaher Corp (DHR), DR Horton Inc (DHI), Enphase Energy Inc (ENPH), EQT Corp (EQT), Equifax Inc (EFX), General Motors Co (GM), Genuine Parts Co (GPC), Halliburton Co (HAL), Interpublic Group of Cos Inc/The (IPG), Intuitive Surgical Inc (ISRG), Invesco Ltd (IVZ), IQVIA Holdings Inc (IQV), KeyCorp (KEY), Lockheed Martin Corp (LMT), MSCI Inc (MSCI), Northrop Grumman Corp (NOC), PACCAR Inc (PCAR), Pentair PLC (PNR), Philip Morris International In (PM), PulteGroup Inc (PHM), Quest Diagnostics Inc (DGX), RTX Corp (RTX), Sherwin-Williams Co/The (SHW), Synchrony Financial (SYF), Texas Instruments Inc (TXN).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported by Chip Stock Strength and Lower Bond Yields

The S&P 500 Index ($SPX) (SPY) today is up +0.54%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.41%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.72%. September E-mini S&P futures (ESU25) are up +0.53%, and September E-mini Nasdaq futures (NQU25) are up +0.73%.
Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs. Lower bond yields are supportive of stocks, with the 10-year T-note yield down -6 bp to a 1-week low of 4.36%. Also, the strength in chip stocks today is boosting technology stocks and leading the broader market higher.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Some favorable corporate news is also supporting gains in stocks today. Block is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday. Also, Domino’s Pizza is up more than +2% after reporting better-than-expected Q2 revenue, and Verizon Communications is up more than +2% after raising the lower end of its full-year earnings forecast.
Recent trade news has put some downward pressure on stocks. Last Wednesday, President Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1.
Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Mr. Trump also imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don’t relocate production to the US within the next year.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. On Wednesday, June existing home sales are expected to fall -0.7% m/m to 4.00 million. On Thursday, weekly initial unemployment claims are expected to climb by +6,000 to 227,000. Also, the July S&P US manufacturing PMI is expected to slip -0.4 to 52.5. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 5% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are awaiting a heavy slate of quarterly corporate earnings results this week, including Alphabet and Tesla on Wednesday. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.42%. China’s Shanghai Composite rallied to a 9.5-month high and closed up +0.72%. Japan’s Nikkei Stock 225 was closed today for the Marine Day holiday.
Interest Rates
September 10-year T-notes (ZNU25) today are up +14 ticks. The 10-year T-note yield is down -5.8 bp to 4.358%. Sep T-notes today rose to a 1-week high, and the 10-year T-note yield fell to a 1-week low of 4.354%. T-notes are climbing today on carryover support from last Friday when Fed Governor Christopher Waller said he backs a Fed rate cut at the July 29-30 FOMC meeting. T-notes also have carryover support from today’s rally in 10-year German bunds to a 2-week high.
European government bond yields today are moving lower. The 10-year German bund yield fell to a 2-week low of 2.611% and is down -7.7 bp to 2.618%. The 10-year UK gilt yield is down -6.1 bp to 4.613%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
Strength in chip stocks is supporting gains in the broader market. ARM Holdings Plc (ARM) is up more than +3% to lead gainers in the Nasdaq 100. Also, GlobalFoundries (GFS), ON Semiconductor Corp (ON), NXP Semiconductors NV (NXPI), Qualcomm (QCOM), and Broadcom (AVGO) are up more than +2%. In addition, Lam Research (LRCX), Intel (INTC), Advanced Micro Devices (AMD), and Applied Materials (AMAT) are up more than +1%.
Block (XYZ) is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday.
Verizon Communications (VZ) is up more than +4% to lead gainers in the S&P 500 and Dow Jones Industrials after raising the lower end of its full-year earnings forecast to +1% to 3% from a previous estimate of 0% to +3%.
Equinix Inc. (EQIX) is up more than +2% after Elliot Investment Management said it has built up a stake in the company in an effort to get it to take steps to boost its share price.
Pinterest (PINS) is up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $45.
Dollar Tree (DLTR) is up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $120.
Invesco Ltd (IVZ) is up more than +1% after TD Cowen upgraded the stock to buy from hold with a price target of $25.
Natural gas producers are under pressure today, with nat-gas futures (NQQ25) plunging more than -6% to a 1-week low on forecasts for cooler US temperatures later this month. As a result, EQT Corp (EQT) is down more than -6% to lead losers in the S&P 500. Also, Antero Resources (AR) is down more than -6%, and Cheniere Energy (LNG) and Expand Energy (EXE) are down more than -5%.
Sarepta Therapeutics (SRPT) is down more than -4% after it refused to pause all shipments of its Elevidys treatment after three deaths were linked to the company’s gene therapies.
Biogen (BIIB) is down more than -2% to lead losers in the Nasdaq 100 after Truist Securities downgraded the stock to hold from buy.
Molina Healthcare (MOH) is down more than -2% after TD Cowen cut its price target on the stock to $283 from $369.
Centene (CNC) is down more than -1% after TD Cowen downgraded the stock to hold from buy.
Earnings Reports (7/21/2025)
AGNC Investment Corp (AGNC), Alexandria Real Estate Equities (ARE), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Domino’s Pizza Inc (DPZ), Equity LifeStyle Properties In (ELS), Medpace Holdings Inc (MEDP), NXP Semiconductors NV (NXPI), RLI Corp (RLI), Roper Technologies Inc (ROP), Steel Dynamics Inc (STLD), Verizon Communications Inc (VZ), W R Berkley Corp (WRB), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 and Nasdaq 100 Jump to Record Highs as Bond Yields Fall

The S&P 500 Index ($SPX) (SPY) today is up +0.30%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.13%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.49%. September E-mini S&P futures (ESU25) are up +0.37%, and September E-mini Nasdaq futures (NQU25) are up +0.65%.
Stock indexes are moving higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs. Lower bond yields are supportive of stocks, with the 10-year T-note yield down -5 bp to 4.37%. Also, the strength in chip stocks today is boosting technology stocks and leading the broader market higher.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Some favorable corporate news is also supporting gains in stocks today. Block is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday. Also, Domino’s Pizza is up more than +2% after reporting better-than-expected Q2 revenue, and Verizon Communications is up more than +2% after raising the lower end of its full-year earnings forecast.
Recent trade news has put some downward pressure on stocks. Last Wednesday, President Trump announced that he intends to send a tariff letter to more than 150 countries, notifying them that their tariff rates could be 10% or 15%, effective August 1.
Also, President Trump recently announced that the US will impose 30% tariffs on US imports from the European Union and Mexico, effective August 1. In addition, Mr. Trump said that a 35% tariff on some Canadian products would take effect on August 1, up from the current 25%. Mr. Trump also imposed a 50% tariff on copper imports, which will include semi-finished goods, and stated that drug companies could face tariffs as high as 200% on imports if they don’t relocate production to the US within the next year.
The markets this week will focus on any tariff news along with the announcement of any new trade deals. On Wednesday, June existing home sales are expected to fall -0.7% m/m to 4.00 million. On Thursday, weekly initial unemployment claims are expected to climb by +6,000 to 227,000. Also, the July S&P US manufacturing PMI is expected to slip -0.4 to 52.5. Finally, on Thursday, June new home sales are expected to climb +4.3% m/m to 650,000. On Friday, June capital goods new orders nondefense ex-aircraft and parts are expected to increase by +0.2% m/m.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 5% at the July 29-30 FOMC meeting and 58% at the following meeting on September 16-17.
The markets are awaiting a heavy slate of quarterly corporate earnings results this week, including Alphabet and Tesla on Wednesday. About one-fifth of the companies in the S&P 500 are expected to report their Q2 earnings results this week. Early results now show S&P 500 earnings are on track to rise +3.2% for the second quarter, better than the pre-season expectations of +2.8% y/y, according to Bloomberg Intelligence. Also, only six of the eleven S&P 500 sectors are projected to post an increase in earnings, the fewest since Q1 of 2023, according to Yardeni Research.
Overseas stock markets today are mixed. The Euro Stoxx 50 is down -0.64%. China’s Shanghai Composite rallied to a 9.5-month high and closed up +0.72%. Japan’s Nikkei Stock 225 was closed today for the Marine Day holiday.
Interest Rates
September 10-year T-notes (ZNU25) today are up +12 ticks. The 10-year T-note yield is down -4.6 bp to 4.370%. Sep T-notes today rose to a 1-week high, and the 10-year T-note yield fell to a 1-week low of 4.364%. T-notes are climbing today on carryover support from last Friday when Fed Governor Christopher Waller said he backs a Fed rate cut at the July 29-30 FOMC meeting. T-notes also have carryover support from today’s rally in 10-year German bunds to a 2-week high.
European government bond yields today are moving lower. The 10-year German bund yield fell to a 2-week low of 2.616% and is down -7.3 bp to 2.622%. The 10-year UK gilt yield is down -5.7 bp to 4.618%.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at Thursday’s policy meeting.
US Stock Movers
Strength in chip stocks is supporting gains in the broader market. GlobalFoundries (GFS) is up more than +2% to lead gainers in the Nasdaq 100. Also, Intel (INTC), ARM Holdings Plc (ARM), and ON Semiconductor Corp (ON) are up more than +2%. In addition, Advanced Micro Devices (AMD), NXP Semiconductors NV (NXPI), Microchip Technology (MCHP), Applied Materials (AMAT), and Qualcomm (QCOM) are up more than +1%.
Block (XYZ) is up more than +7% after S&P Dow Jones Indices announced that the company will replace Hess Corp in the S&P 500 before the opening of trade on Wednesday.
Verizon Communications (VZ) is up more than +2% to lead gainers in the Dow Jones Industrials after raising the lower end of its full-year earnings forecast to +1% to 3% from a previous estimate of 0% to +3%.
Domino’s Pizza (DPZ) is up more than +2% after reporting Q2 revenue of $1.15 billion, better than the consensus of $1.14 billion.
Pinterest (PINS) is up more than +2% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $45.
Dollar Tree (DLTR) is up down more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $120.
Equinix Inc. (EQIX) is up more than +1% after Elliot Investment Management said it has built up a stake in the company in an effort to get it to take steps to boost its share price.
Invesco Ltd (IVZ) is up more than +1% after TD Cowen upgraded the stock to buy from hold with a price target of $25.
Sarepta Therapeutics (SRPT) is down more than -5% after it refused to pause all shipments of its Elevidys treatment after three deaths were linked to the company’s gene therapies.
Stellantis NV (STLA) is down more than -1% after reporting a preliminary net loss for the first half of the year of 2.3 billion euros ($2.68 billion).
Centene (CNC) is down more than -1% after TD Cowen downgraded the stock to hold from buy.
Target (TGT) is down nearly -1% after Barclays downgraded the stock to underweight from equal weight with a price target of $91.
Earnings Reports (7/21/2025)
AGNC Investment Corp (AGNC), Alexandria Real Estate Equities (ARE), BOK Financial Corp (BOKF), Cleveland-Cliffs Inc (CLF), Crown Holdings Inc (CCK), Domino’s Pizza Inc (DPZ), Equity LifeStyle Properties In (ELS), Medpace Holdings Inc (MEDP), NXP Semiconductors NV (NXPI), RLI Corp (RLI), Roper Technologies Inc (ROP), Steel Dynamics Inc (STLD), Verizon Communications Inc (VZ), W R Berkley Corp (WRB), Wintrust Financial Corp (WTFC), Zions Bancorp NA (ZION).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Climb on Lower Bond Yields and Favorable Corporate News

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in UnitedHealth Group Inc (Symbol: UNH), where a total of 90,029 contracts have traded so far, representing approximately 9.0 million underlying shares. That amounts to about 73.4% of UNH's average daily trading volume over the past month of 12.3 million shares. Especially high volume was seen for the $300 strike call option expiring July 11, 2025, with 9,137 contracts trading so far today, representing approximately 913,700 underlying shares of UNH. Below is a chart showing UNH's trailing twelve month trading history, with the $300 strike highlighted in orange:
Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 18,049 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 54.8% of DLTR's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $110 strike call option expiring October 17, 2025, with 3,506 contracts trading so far today, representing approximately 350,600 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $110 strike highlighted in orange:
And Quest Diagnostics, Inc. (Symbol: DGX) saw options trading volume of 4,595 contracts, representing approximately 459,500 underlying shares or approximately 52.6% of DGX's average daily trading volume over the past month, of 873,360 shares. Particularly high volume was seen for the $165 strike put option expiring August 15, 2025, with 1,901 contracts trading so far today, representing approximately 190,100 underlying shares of DGX. Below is a chart showing DGX's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for UNH options, DLTR options, or DGX options, visit StockOptionsChannel.com.
Precious Metals Dividend Stocks
AAOI Price Target
TCBI Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Friday Option Activity: UNH, DLTR, DGX

In trading on Thursday, shares of Dollar Tree Inc (Symbol: DLTR) touched a new 52-week high of $108.95/share. That's a 80.11% rise, or $48.46 per share from the 52-week low of $60.49 set back on 11/12/2024. That means at today's intraday high, any investor who purchased DLTR stock any time over the past 52 weeks has an unrealized gain, including company insiders.
Over the past six months, insiders have been scooping up shares, and those bets are now paying off handsomely. As summarized by the table below, DLTR has seen 3 different instances of insiders buying over the trailing six month period.
The chart below shows where DLTR has traded over the past year, with the 50-day and 200-day moving averages included.
In afternoon trading on Thursday, DLTR shares are changing hands at $108.66/share, slightly below the new 52-week high.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Insider Bets Paying Off At DLTR As New 52-Week High Reached

Target Corporation TGT has experienced a significant decline over the past six months, with its shares plummeting 28.1%, underperforming the Zacks Retail - Discount Stores industry's rally of 3.2%. The company also trailed the Retail-Wholesale sector’s growth of 4.2% and the S&P 500's growth of 4.6% during the same period.
TGT’s Past 6 Months’ Performance
Image Source: Zacks Investment Research
The recent decline in the TGT stock’s price is led by the reduced fiscal 2025 guidance amid softer consumer demand, lower spending per visit and declining store traffic. Persistent margin pressures from elevated markdown activity and rising digital fulfillment costs have weighed on profitability, raising concerns about the company’s ability to defend earnings amid a cautious retail environment.
Target has also underperformed its peers, including Dollar General Corporation DG, Dollar Tree, Inc. DLTR and Costco Wholesale Corporation COST.
Shares of Dollar General, Dollar Tree and Costco have rallied 51.2%, 29.5% and 8.8%, respectively, over the same period.
TGT’s Performance vs. Peer Performance
Image Source: Zacks Investment Research
Closing at $98.65 in yesterday’s trading session, the TGT stock stands 41.1% below its 52-week high of $167.40 reached on Aug. 21. Target is trading below its 100 and 200-day simple moving averages of $103.36 and $121.75, respectively, signaling bearish sentiment in maintaining the recent performance levels.
TGT Trades Below 50 & 200-Day Moving Averages
Image Source: Zacks Investment Research
The recent slide in the stock has contributed to Target’s discounted status. This leading general merchandise retailer is currently trading at a compelling discount relative to its industry. The TGT stock trades at a forward 12-month price-to-earnings (P/E) ratio of 12.75, lower than the industry’s average of 32.30.
TGT P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
The current valuation appears compelling when compared with peers. Dollar General, Dollar Tree and Costco are all trading at higher forward P/E ratios of 19.01, 17.34, and 50.57, respectively.
What’s Behind TGT’s Dismal Stock Run?
Target’s stock has been under pressure following its disappointing first quarter fiscal 2025 results and a significant cut to its full-year guidance. The company reported adjusted earnings per share (EPS) of $1.30, sharply down from $2.03 in the same quarter last year. Total sales also fell 2.8% year over year to $23.85 billion.
In response to its weaker-than-expected performance, Target revised its full-year outlook. It now projects a low-single-digit decline in sales and has lowered its adjusted EPS guidance to $7.00-$9.00 from the earlier mentioned $8.80-$9.80.
At the core of Target’s challenges is its struggling retail performance, especially in physical stores, which remain the key part of its business model. Comparable sales dropped 3.8% year over year, led by a significant 5.7% decline in comparable store sales. Overall traffic fell 2.4% and average transaction size declined 1.4%.
Margin pressures further dampened investor sentiment. The gross margin fell by 60 basis points to 28.2% due to increased markdown activity and rising costs tied to digital fulfillment and supply-chain operations. Margin pressures were influenced by higher digital sales penetration and costs related to the ramp-up of new supply-chain facilities.
Operational costs also rose sharply. Increased costs related to labor investments, healthcare costs, general liability and startup costs associated with new capital projects pressured Target’s fiscal first quarter adjusted EPS by approximately 50 cents year over year.
Increased investments in wages, healthcare benefits and store openings added about 50 cents of year-over-year pressure on the fiscal first quarter adjusted EPS. Combined with deleveraging effects from lower sales and rising SG&A costs, Target’s profitability has taken a significant hit. Further complicating the challenge are external risks such as tariff uncertainties and macroeconomic pressures.
Downward Estimate Revisions Signal Pressure on TGT’s Earnings
Reflecting cautious sentiment around Target, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 30 days, the consensus estimates for the current and next fiscal years have declined by seven cents to $7.55 and five cents to $8.15 per share, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
Target’s Game Plan to Overcome Current Challenges
TGT is taking several steps to navigate the ongoing challenges in the retail environment. Leveraging its strong brand reputation and broad product assortment, the company continues to expand its e-commerce capabilities and physical store presence.
A major growth driver is Target Plus, its third-party marketplace, which saw a 20% year-over-year increase in Gross Merchandise Value (GMV) in the fiscal first quarter. By adding hundreds of partners and targeting $5 billion in GMV by 2030, Target aims to deepen customer engagement, particularly in key categories like home and apparel.
A significant part of Target’s strategy also focuses on enhancing customer loyalty through its membership program, Target Circle 360. Same-day delivery services tied to this program grew more than 35% in the fiscal first quarter, showcasing how exclusive benefits and faster fulfillment are helping drive customer retention and repeat purchases.
In addition to digital growth, Target remains committed to strengthening its physical store network. The company opened three stores in the fiscal first quarter and plans to add 20 locations by the end of the year. It is also heavily investing in store remodels, which have proven effective in boosting sales. Completed remodels have delivered a 2-4% rise in comparable sales in the first year and close to 3% in the second year, reflecting improved customer shopping experiences and increased store productivity.
On the supply-chain side, Target is proactively mitigating risks associated with tariffs and international trade uncertainties. The company has diversified its sourcing strategy, reducing its dependency on China from 60% in 2017 to under 30% in the fiscal first quarter, with a goal of bringing it below 25% by 2026.
Target is also working closely with vendor partners, adjusting its buying and production strategies, and exploring alternative sourcing locations to cushion the impacts of potential future tariffs.
By combining digital innovation, customer-centric programs, store investments and supply-chain resilience, Target is positioning itself to better weather short-term pressures and drive long-term growth.
How to Play TGT Stock: Buy, Hold or Sell?
Given the magnitude of challenges facing Target, including declining store traffic, pressured margins and a downwardly revised earnings outlook, current and potential investors may want to adopt a cautious stance. While the company is actively pursuing initiatives to stabilize performance, such as digital expansion, loyalty programs and supply-chain diversification, those efforts will take time to materially shift the trajectory.
Until there is clearer evidence of a turnaround, staying on the sidelines or closely monitoring execution progress may be the more prudent course of action. At present, TGT carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Target Stock Falls 28% in 6 Months: Time to Buy, Hold or Sell?

At a time when volatility strikes almost every day, investors often rely on value investing rather than other options, such as growth or momentum. As soon as other investors start selling their stocks at a cheaper rate in times of market uncertainty, value investors take this as an opportunity to pick good stocks at a discounted price.
Several stocks that have surged significantly in the recent past have shown the overwhelming success of this pure-play investment strategy. Here, we discuss four such stocks — Carnival Corporation CCL, Harmony Gold Mining HMY, Dollar Tree DLTR and Greif, Inc. GEF.
However, this apparently simple value investment technique has some drawbacks and not understanding the strategy properly may often lead to “value traps.” In such a situation, these value picks start to underperform over the long run as the temporary problems, which once drove the share price down, turn out to be persistent.
There are many value investment yardsticks, such as dividend yield, P/E or P/B, which are simple and can single out whether a stock is trading at a discount.
However, for investors looking to escape such value traps, it is also vital to determine where the stock would be headed in the next 12 to 24 months. Warren Buffett advises these investors to focus on the earnings growth potential of a stock. This is where lies the importance of a not-so-popular value investing metric, the PEG ratio.
PEG Ratio at a Glance
The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate
A low PEG ratio is always better for value investors.
While P/E alone fails to identify a true value stock, PEG helps find the intrinsic value of a stock.
There are some drawbacks to using the PEG ratio. It doesn’t consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term.
Hence, PEG-based investing can turn out to be even more rewarding if some other relevant parameters are also taken into consideration.
Here are some of the screening criteria for a winning strategy:
PEG Ratio less than X Industry Median
P/E Ratio (using F1) less than X Industry Median (for more accurate valuation purposes)
Zacks Rank #1 (Strong Buy) or 2 (Buy) (Whether good market conditions or bad, stocks with a Zacks Rank #1 or 2 have a proven history of success.)
Market Capitalization greater than $1 billion (This helps us to focus on companies that have strong liquidity.)
Average 20-Day Volume greater than 50,000 (A substantial trading volume ensures that the stock is easily tradable.)
Percentage Change F1 Earnings Estimate Revisions (4 Weeks) greater than 5% (Upward estimate revisions add to the optimism, suggesting further bullishness.)
Value Score of less than or equal to B: Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1, 2 or 3 (Hold), offer the best upside potential.
Our PEG-Driven Picks
Here are four stocks that qualified the screening:
Carnival: Headquartered in Miami, FL, Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. It is the world’s leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia.
Carnival currently has a Zacks Rank #2 and a Value Score of A. CCL also has an impressive five-year historical growth rate of 28.5%.
Harmony Gold: The company is based in Randfontein, South Africa. The company conducts underground and surface gold mining. It is also engaged in related activities such as exploration, processing, smelting and refining. Harmony Gold has nine underground operations located in the Witwatersrand Basin.
Apart from a discounted PEG and P/E, Harmony Gold currently has a Zacks Rank #1 and a Value Score of B. HMY has a long-term historical growth rate of 73.4%.
Dollar Tree: Headquartered in Chesapeake, VA, Dollar Tree is an operator of discount variety stores offering merchandise and other assortments. Its stores successfully operate in major metropolitan areas, mid-sized cities and small towns. The company offers a wide range of quality everyday general merchandise in many categories, including housewares, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree has a Zacks Rank #2 and a Value Score of B. DLTR also has an impressive five-year expected growth rate of 6.7%.
Greif: Delaware, OH-based Greif is a leading global producer of industrial packaging products and services with manufacturing facilities located in over 35 countries. The company offers a wide range of rigid industrial packaging products. It manufactures containerboard and corrugated products for markets such as packaging, automotive, food and building products in North America.
Greif has an impressive long-term expected earnings growth rate of 9.9%. GEF currently has a Value Score of A and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Crush the Market With These 4 PEG-Efficient Value Stocks

Shares of Dollar Tree (NASDAQ: DLTR) are up more than 60% since mid-March and are fast approaching a 52-week high. As the company prepares to divest itself from its Family Dollar brand and embraces a new pricing model, Dollar Tree appears capable of thriving even as many retailers struggle with tariffs and economic uncertainty.
There's a lot happening with Dollar Tree -- management changes, the Family Dollar mess, and its 3.0 pricing model. But all of it makes Dollar Tree a compelling stock that appears capable of producing oversized gains for investors.
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How is Dollar Tree threading the needle? And more importantly, is there still time for investors to join the rally?
Family Dollar didn't work out
Dollar Tree excels by providing low-cost household goods, food, cleaning supplies, and beauty products. Most items are priced at $1.25 (it used to be just a dollar, but the company began raising prices in late 2021 to offer a wider selection).
Shares of Dollar Tree stock topped the $170 mark as recently as 2022, but began a long fall in 2024, stretching into the first quarter of 2025. Dollar Tree CEO Rick Dreiling stepped down, citing his health, and was replaced by Michael Creedon, who was formerly chief operating officer. Meanwhile, Family Dollar, which it purchased for $8.5 billion in 2015, continued to drag on the business.
Dollar Tree finally shuttered several hundred Family Dollar stores in recent years, and then in 2024 announced it was exploring divesting itself of the brand. This March, Dollar Tree announced it had a buyer -- a partnership of hedge fund Brigade Capital Management and investment firm Macellum Capital Management, which are buying the stores for just over $1 billion. The deal is expected to close in this quarter.
Not surprisingly, Dollar Tree stock started to recover soon after the announcement. Shares are up 61% since mid-March and 33% on a year-to-date basis. Dollar Tree stock has a long way to go from its 2022 ceiling, but it's only about 10% off its 52-week-high.
Writing a new chapter
The most interesting thing about Dollar Tree is its willingness to walk away from what made it famous. The company is embracing its 3.0 multi-price store format that includes wider store aisles, better signage, and a tiered price structure, where products range up to $7. Dollar Tree began switching stores over in 2024 and now has about 3,400 in the new format. Management hopes to have half of the company's stores working in the 3.0 format by the end of 2025.
The format means that Dollar Tree can expand its offerings and draw in additional customers at higher price points. Same-store sales in the first quarter of fiscal 2025 (ending May 3) showed a 5.4% gain, which management attributed to higher prices and greater traffic.
Gross profit increased to $1.6 billion, thanks to lower freight and occupancy costs. Adjusted earnings per share came in at $1.26. Dollar Tree opened 148 stores during the quarter and now has more than 9,000 locations, with plans to open a total of 400 stores this year.
Management reiterated its full-year revenue guidance of $18.5 billion to $19.1 billion, while raising its guidance for earnings. The company is now expecting full-year EPS of $5.15 to $5.65, up from a range of $5 to $5.50.
What's ahead for Dollar Tree?
Even with higher-priced items, Dollar Tree is a discount retailer, and when people feel like their pocketbooks are getting squeezed, they are much more likely to look for consumer staples in a store that specializes in low prices rather than luxury items. So that helps Dollar Tree's outlook.
But there's also the continued threat of tariffs, although President Donald Trump is developing the practice of announcing huge punitive tariffs as a negotiating ploy and then immediately rolling them back. Tariffs are a threat to any discount retailer, but perhaps even more to a store that sells many of its products for $1.25. If the tariffs come roaring back, Dollar Tree will need to make some changes either in pricing, the types of goods it offers, or will have to work some price relief with its suppliers.
So is Dollar Tree a buy?
Dollar Tree today is a pretty cheap stock -- the price-to-earnings ratio of 19.7 and the forward P/E of 18.3 are both attractive, as is its low price-to-sales ratio of 1.2 times.
Now that the company is ridding itself of the Family Dollar fiasco and appealing to more consumers with its 3.0 multi-price format, Dollar Tree stock appears capable of setting a new 52-week high this summer. It's too early to say if it gets back to its 2022 heyday, but Dollar Tree is certainly on the right track.
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Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Dollar Tree, Inc.

Price history and volume

Shares 360

Investment risk — high

Investment potential — medium

AI Factors

stagflation

Consumer Confidence

Food Supply

Inflation

Consumer Spending

Recession Risk

Supply Chain Disruptions

Interest Rates

Security parameters