(RTTNews) - Dollar Tree, Inc. (DLTR) announced plans for Family Dollar operations to return to West Memphis, Arkansas, with a fully reimagined and refreshed distribution center. The center will have the capacity to serve up to 1,000 Family Dollar stores in the region, and will cr
Dollar General (NYSE: DG) stock has found itself on the "deep discount" shelf. So far in 2023, the S&P 500 is up over 10% following its September swoon, but the retailer's shares are down nearly 60% through early October.
(RTTNews) - Variety store chain Family Dollar, Inc., affiliated to Dollar Tree Inc., is recalling certain over-the-counter or OTC drugs and medical devices regulated by the U.S. Food and Drug Administration as they were stored outside of labeled temperature requirements.
Based on a cursory reading of the major headlines, recession fears might not seem immediately evident. However, for those investors that are concerned – and there are reasons to at least consider the prospect – Costco ( ) offers an enticing idea. No, it’s not the most exciting investment available. However, its predictability and resilience should shine brightly. Therefore, I am bullish on COST stock. NASDAQ:COST Last week, the equities sector ended on a positive note, in large part because of the robust September jobs report. As TipRanks contributor Yulia Vaiman , the nuances present a somewhat optimistic picture. Yes, the jobs report came in unexpectedly hotter. However, wage growth also slowed significantly, which means the Federal Reserve may yet achieve its desired soft landing (slowing down inflation while not entering a recession). discussed For COST stock, the underlying business is arguably prepared for either outcome. When considering the average Costco demographic compared to the core demographics of other big-box retailers, the former shoppers tend to be younger and make more money. By logical deduction, the Costco shopper is likelier to be better educated, enabling more upward mobility. Therefore, if the Fed is unable to curb inflation for whatever reason – due to the sheer number of additional dollars chasing after fewer goods – that should have less impact on the educated, upper-middle-class segment that Costco caters to. On the flip side, if the central bank kills inflation but also hurts the economy in the process, the most valuable workers will be the last to be cut. And if, by chance, policymakers facilitate a soft landing, well, that should be universally positive for U.S. households. No matter what, COST stock appears well-positioned for whatever happens next. While the broader fundamentals appear quite encouraging for COST stock, it’s difficult to ignore a key objection: shares have gone up so much. Of course, a isn’t exactly the most groundbreaking print ever. However, for a retail giant like Costco, it’s indeed an impressive rally. Unfortunately, that may also mean higher risks of holding the bag. year-to-date performance of 24% Adding to the jitters, COST stock slipped by a bit over 1% last week. Obviously, that’s not a great comparison when the benchmark S&P 500 ( ) popped higher (albeit slightly) during the same period. Nonetheless, while it’s impossible to predict the day-to-day rumblings of COST stock, one can reasonably trust the long-term picture. SPX Specifically, Costco benefits from . In its most recent quarter ended August, the retailer printed revenue of $78.9 billion, up 9.5% from the $72.1 billion posted in the year-ago quarter. Notably, its gross profit clocked in at $9.7 billion, translating to a gross profit margin of 12.3%, up 50 basis points from one year ago. profit margin growth Also, its operating margin improved to 3.52% from 3.46% a year earlier. This metric translated to a net income margin of 2.74% in the most recent quarter versus 2.59% in the year-ago period. Most importantly, the discussion about margins is extremely relevant at this juncture. Primarily, some of the traditional discount dollar stores have failed to impress Wall Street despite the power of their discount-oriented business models amid rising consumer pressures. Notably, Dollar General ( ) suffered dearly because it . The about Dollar Tree ( ). NYSE:DGsacrificed gross margins for increased salessame can be saidNASDAQ:DLTR Historically, discount retailers have performed well during economic downturns. However, such companies can’t afford to slash their prices down to the bone. Fortunately, Costco basically has the opposite situation working in its favor. To be fair, another criticism launched against COST stock stems from its valuation. Priced at over 39x trailing earnings, Costco appears overpriced relative to the underlying retail sector, whose P/E ratio is in the teens. Now, it’s difficult to classify Costco, but no matter what, a 39x multiple sticks out in a not-so-pleasant way. Nevertheless, it’s important to consider why COST stock commands such a rich premium: people continue to shop there irrespective of outside pressures. In other words, Costco has tremendous pricing power. Ahead of an uncertain economic environment, this attribute may be more important than a low valuation on paper. Turning to Wall Street, COST stock has a Strong Buy consensus rating based on 19 Buys, six Holds, and zero Sell ratings. The is $601.20, implying 7% upside potential. average COST stock price target Quite clearly, no one mistakes COST stock as an exciting venture. That’s not the point of Costco, especially under present circumstances. With ambiguity as to the direction of the economy, Costco brings predictability to the table. Arguably, that’s well worth the premium COST stock carries. Disclosure COST Stock Stands Prepared for Whatever Happens Next Trusting the Rally for the Long Haul Not the Cheapest, but One of the Most Reliable Is COST Stock a Buy, According to Analysts? The Takeaway: COST Stock Isn’t Exciting but Predictable
Fintel reports that on October 10, 2023, Exane BNP Paribas initiated coverage of Dollar Tree (NASDAQ:DLTR) with a Outperform recommendation.
Fintel reports that on October 5, 2023, Truist Securities maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Buy recommendation.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Dollar Tree Inc (Symbol: DLTR), where a total volume of 35,914 contracts has been traded thus far today, a contract volume which is representative of approximat
Investors in Dollar Tree Inc (Symbol: DLTR) saw new options begin trading this week, for the February 2024 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 141 days until expiration the newly trading contr
Investors in Dollar Tree Inc (Symbol: DLTR) saw new options begin trading this week, for the May 2024 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 233 days until expiration the newly trading contr
Investors in Dollar Tree DLTR need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 19, 2024 $45.00 Call had some of the highest implied volatility of all equity options toda
(RTTNews) - Dollar Tree, Inc. (DLTR) announced Friday that its shoppers will soon be able to do more with the new Family Dollar mobile app that hits app store shelves in October, with a completely new mobile shopping and saving experience.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Dollar Tree Inc (Symbol: DLTR), where a total volume of 17,641 contracts has been traded thus far today, a contract volume which is representative of approximat
Snacks and cleaning supplies aren’t the only thing on sale at Dollar General Corporation (NYSE:DG). Last week, shares of the discount retailer fell to their lowest level since May 2019 following a dreadful second quarter earnings report. Like a bottle of generic bleach, the move
After providing underwhelming guidance during their Q2 reports in August, Target TGT and Dollar Tree's DLTR stock have continued to move lower.
If you're keeping tabs on retailers' second-quarter numbers, then you've seen a little bit of everything. Some store chains have done well. Others haven't. Several of these names dished out big surprises too, both good and bad. With the dust from Q2's earnings season finally star
On August 30, 2023 at 15:08:55 ET an unusually large $6,926.50K block of Put contracts in Dollar Tree (DLTR) was bought, with a strike price of $200.00 / share, expiring in 142 day(s) (on January 19, 2024). Fintel tracks all large options trades, and the premiu
Fintel reports that on August 30, 2023, Guggenheim reiterated coverage of Dollar Tree (NASDAQ:DLTR) with a Buy recommendation.
Fintel reports that on August 25, 2023, Truist Securities maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Buy recommendation.
Fintel reports that on August 25, 2023, B of A Securities maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Underperform recommendation.
Fintel reports that on August 25, 2023, Piper Sandler maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Overweight recommendation.
Fintel reports that on August 25, 2023, Citigroup maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Buy recommendation.
Fintel reports that on August 25, 2023, Deutsche Bank maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Buy recommendation.
Fintel reports that on August 25, 2023, Telsey Advisory Group maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Outperform recommendation.
Fintel reports that on August 25, 2023, Barclays maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Equal-Weight recommendation.
Fintel reports that on August 25, 2023, Goldman Sachs maintained coverage of Dollar Tree (NASDAQ:DLTR) with a Neutral recommendation.
The three major U.S. stock indexes ended down more than 1% each on Thursday, led by a drop in the Nasdaq after this week's sharp gains and as investors were nervous ahead of Federal Reserve Chair Jerome Powell's speech Friday.
U.S. stocks ended sharply lower on Thursday, led by a drop in the Nasdaq after this week's sharp gains and investor nervousness ahead of Federal Reserve Chair Jerome Powell's speech Friday.