(A Top Pick Jan 27/22, Up 21.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DLTR is progressing well. We now recommend trailing up the stop (from $130) to $138.
(A Top Pick Jan 27/22, Up 20%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with DLTR has achieved its $155 objective. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $125) to $130.
The stars are lining up. Dollar General hasn't performed as well as DT, but worth looking at. DT's March 2 report was okay, but the street liked it. Price targets for DT are $165-180, so there's upside, especially with activists are involved. But D-Gen is really the hidden gem, which had a huge move a few months ago, then sold off with everything else. He expects DG to take the next leg higher.
It reports Wednesday. It's been under pressure from activist investors for a long time; they don't like DLTR's execution, despite its nice run. It looks good after the government subsidies have ended.
(A Top Pick Jan 08/21, Up 22%) Really good defensive growth. Waiting for a pullback to add for new clients. Next year, profits are expected to jump by a third. Potential for surprises, but still likes.
Stockchase Research Editor: Michael O'Reilly We again reiterate this $29 billion market cap discount retailer as a TOP PICK. It trades at 22x earnings, compared to peers at 24x. It has wisely drawn down some cash reserves to buy back stock and pay down debt. Recently reported earnings met analyst expectations and they are managing a ROE over 18%. The company recently announced price increases that raise the median product price to $1.25 from $1.00. Customers are voicing concern, but the vast majority are accepting. We we continue to recommend a stop loss at $125, looking to achieve $109, looking to achieve $155 -- upside potential over 18%. Yield 0% (Analysts’ price target is $154.73)
(A Top Pick Sep 16/21, Up 46.2%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with DLTR is progressing well. We now recommend trailing up the stop (from $90) to $125.
Dollarama She owns Dollar Tree instead, because it has multiple price points of products in its stores. DOL dominates Canada and has introduced those price points, but has backed off on $5. Inflationary and shipping pressures may impact them, but are handling them well, like packaging items smaller to keep their prices low. She prefers Dollar Tree.
(A Top Pick Apr 29/21, Up 70%) Outlook for growth is exceptional.
Potential for margin improvement.
A good stock going forward in any economic environment.
(A Top Pick Jun 22/21, Up 36%) Multi-price strategy was rolled out more quickly than planned, and the stock responded. Long runway ahead. He's assessing what the next 3-5 years will hold.
40% of all stores opening in the US are dollar stores. Dollar General is growing faster, however it is getting harder to maintain their one dollar price cap. He prefers Five Below.
(A Top Pick Sep 16/21, Up 22.4%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with DLTR is progressing well and has achieved our $109 objective. To remain disciplined, we recommend covering half the position here and trailing up the stop (from $80) to $90 -- just above the original recommended entry level.
Stockchase Research Editor: Michael O'Reilly We reiterate our recommendation of DLTR as a TOP PICK. It trades at 14x earnings, compared to peers at 20x. Currently it is valued at under 3x book value. It has drawn down cash reserves somewhat, but by buying back $1.3 billion of stock and $800 million in debt it has shored up the balance sheet. We would buy this with a stop loss at $80, looking to achieve $109 -- upside potential over 22%. Yield 0% (Analysts’ price target is $109.14)
The dollar stores as a whole are suffering from expensive freight costs and supply constraints. DT is introducing products above $1 and have lessened their forecast given higher costs. DT has been rolling out higher price points, which is good, and offering a wider selection in American rural areas. Its 16x forward earnings valuation is far better than Dollarama's 24x forward earnings. Expect higher operating costs for 6 months until the shipping and supply problems are solved.
Dollar Tree is a American stock, trading under the symbol DLTR (previously DLTR-Q on Stockchase) on the NASDAQ (DLTR). It is usually referred to as NASDAQ:DLTR or DLTR