As fears of a recession mount and consumers slack off in search of bargains, discount chains like Dollar tree (DLTR) are positioned for growth. Shares of Dollar Tree were upgraded to a Relative Strength (RS) rating from 62 to 74 on Thursday.
A revised RS rating means Chesapeake, Va.-based Dollar Tree’s stock has outperformed 74% of all stocks over the past year, regardless of industry group. Market research shows that top performing stocks often have an RS rating north of 80 in the early stages of their move. See if Dollar Tree can continue to show renewed pricing strength and clear that threshold.
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Dollar Tree Stock Sprouting Cup with Handle
Dollar Tree is trying to fill the handle cup with a 170.46 buy point. See if stocks can break out in high volume. Shares of Dollar Tree bucked a heavy market selloff on Thursday and rose nearly 2% to 145.11.
Dollar Tree reported a 25% increase in EPS to $1.20 last quarter, marking its third straight quarter of double-digit earnings growth. Sales increased by 8% to $6.94 billion.
Peers In Discount Retail Group
Dollar Tree shares rank No. 5 among its peers in the retail-discounts and variety industry group. Dollar General (DG) and: BJ’s Wholesale Club (BJ) are also among the group’s top-rated stocks.
When trying to find the best stocks to buy and watch, a stock’s relative price strength is a good indicator.
IBD’s Relative Strength Rankings reveal market leadership by showing how a stock’s price action over the past 52 weeks compares to other stocks in our database.
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