Dollar Tree: Buy, Sell, or Hold?
Dollar Tree (NASDAQ: DLTR) might seem at first glance like an excellent stock for growth-focused investors. The retailer is expanding sales at a solid clip thanks to the combination of rising customer spending and new store openings. Profit margins are higher than those of its peers, too, due to its scale and its merchandising focus on convenience.
Yet there are warning signs suggesting weaker growth trends ahead. And the stock's premium valuation sets a high bar for the business's performance in 2023. Let's look at whether investors should be happily paying that premium for Dollar Tree shares right now.
On the bright side, Dollar Tree managed to maintain its growth momentum in the past year. Comparable-store sales through late January were up significantly at both its Dollar Tree and Family Dollar franchises. Combined with an increasing store base, these gains allowed reported revenue to rise 8% in fiscal 2022 to $28 billion.
Source Fool.com
