Sell: Dollar Tree (DLTR)
from Blue Chip Growth
Updated from Investment Digest 708, November 30, 2011
Dollar Tree (DLTR) has been disappointing, to say the least. At the time I recommended the stock, the company was finalizing its merger with Family Dollar and had strong sales and earnings prospects. For the most part, DLTR continued to rally through July, when it completed the $8.5 billion acquisition.
However, the merger did not go as smoothly as anticipated. As such, Dollar Tree missed analysts’ earnings estimates for the fiscal first and second quarters. So, the stock has been trending lower since July.
Over the past 60 days, analysts have slashed their EPS projections by 25%, from $0.73 to $0.58. As it stands, Dollar Tree is expected to see its third-quarter earnings decline 15.9% over a year ago. Dollar Tree is expected to release its third-quarter results in mid-November, and I want to unload this stock before then. Sell DLTR.
Louis Navellier, Blue Chip Growth, www.bluechipgrowth.com, 800-718-8289, November 2015