Dollar Tree Shares Dip but Analysts Predict Steady Earnings Growth
Dollar Tree, Inc. (DLTR) has seen its shares rise significantly over the past year, despite a recent dip due to earnings guidance. Analysts maintain a positive outlook, predicting steady earnings growth in the coming years.
The company reported strong earnings in Q2 2025, with adjusted EPS of $0.77 beating expectations. Revenue also came in robust at $4.57 billion. However, shares fell 8.4% in September due to weak Q3 earnings guidance and concerns about rising costs and operating margins. Despite this, analysts expect adjusted EPS to grow to $5.60 in fiscal 2025 and $6.49 in fiscal 2026, representing year-over-year increases of 9.8% and 15.9% respectively.
Analysts currently have a 'Moderate Buy' rating on DLTR stock, with an average price target of $107.43, indicating a potential upside of 4.7%. This positive sentiment is supported by DLTR's impressive 54.4% share price increase over the past 52 weeks, outpacing both the S&P 500 Index and the Consumer Staples Select Sector SPDR Fund. Dollar Tree operates over 9,000 stores in the U.S. and Canada, offering a wide range of products at low prices.
While Dollar Tree's shares experienced a recent setback due to earnings guidance, analysts remain optimistic about the company's future earnings potential. With a strong earnings track record and positive outlook, DLTR continues to be a compelling investment opportunity in the consumer staples sector.
