Where Will Dollar Tree Be in 5 Years?

Many retailers are reporting spikes in consumer spending this year related to COVID-19, and Dollar Tree (NASDAQ: DLTR) is no exception. Sales are up 9% through the first half of the year as shoppers are reportedly making fewer trips but larger purchases at the value retailer. As a result, the stock is up some 40% from its March 2020 lows, even after a plunge following its second-quarter report as results weren't as good as many investors had hoped.

Effects from the pandemic have renewed demand for inexpensive basic household items, even helping the struggling Family Dollar stores that Dollar Tree acquired in 2015. This is no growth stock, though. Looking five years down the road, I think investors would be happier investing elsewhere -- here's why.

Image source: Getty Images.

Source Fool.com