Dollar Tree Inc. DLTR Stock Analysis

Dollar Tree Inc. stock trades under the ticker DLTR & operates a chain of discount merchandise stores.

DLTR stock closed at $100.51/share, after a 16.5% gap up day, with more bullish signals in the near-term future.

Breaking Down Dollar Tree Inc. DLTR Stock’s Technical Performance

Dollar Tree Inc. DLTR Stock Technical Performance Over The Last YEar

DLTR Stock Price: $100.51

10 Day Moving-Average: $88.16

50 Day Moving-Average: $95.49

200 Day Moving-Average: $104.44

RSI: 66.8

MACD: -1.691

Yesterday, DLTR had a bullish MACD crossover, while also crossing over both the 10 & 50 Day Moving-Averages.

While they are still ~4% below their 200 Day MA, there is still momentum to the upside that will help them maintain their current bullishness.

While DLTR stock’s RSI is trending towards overbought, this should subside as they begin to establish a new range.

With the current share price ~5% higher than the 50 Day Moving-Average, the 10 Day Moving-Average should be able to provide additional upwards pressure as it is ~7% away from bullishly crossing the 50 Day MA.

Dollar Tree Inc. DLTR Stock As A Long-Term Investment

Investors may find DLTR’s P/E(ttm) of 13.83 appealing, although their P/B is a bit rich at 2.81.

Yield seeking investors will be disappointed in their lack of a dividend, however there is a lot of bullishness among Institutional Investors, with a 93.5% holding percent.

DLTR has 1.00% Quarterly Revenue Growth Y-o-Y, which investors are beginning to expect more from with inflation concerns.

One area that sticks out to me that investors may not like is DLTR’s $720.8M in Total Cash (mrq) & $9.68B in Total Debt (mrq).

Dollar Tree Inc. DLTR Stock As A Short-Term Trade Using Options

Short-term traders may be interested in taking advantage of DLTR’s recent momentum, while hedging against recent volatility by using options.

I am looking at the 10/15 expiration date contracts, which will have more open interest as the weekly contracts begin to expire in between that time.

The $99 & $100 strike price calls look appealing, with the $105 & $110 puts to be used for hedging against more volatility.

While these contracts are not very liquid at the moment, week by week they should get more Open Interest, as the 10/1 contracts expire tomorrow & the next dated set expire a week from tomorrow.

Tying It All Together

Overall, DLTR stock looks to have many advantages that traders & investors may want to look closer into.

Investors may like their valuation metrics, as well as future growth potential in an iflationary environment.

Short-term traders will like their recent momentum & future growth potential as their technicals catch up with yesterday’s massive gap up.

Dollar Tree Inc.’s stock looks to be worth taking a closer look at, regardless of your trading style or timeframe.

*** I DO NOT OWN SHARES OF DLTR STOCK ***

Leave a Reply

Your email address will not be published. Required fields are marked *