Dollar Tree
DLTR
Delayed Nasdaq - 11/17 10:00:00 pm
94.61USD
-0.02%

Good timing to anticipate the return of volatility

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David Meurisse
Contributor / Partner

Strategy published on : 04/21/2017 | 14:26

long trade
Stop-loss triggered

Entry price : 79.73$
Target : 89.7$
Stop-loss : 75.9$
Potential : 12.5%

The price of Dollar Tree, Inc. shares is range-bound. This phase will end sooner or later when volatility comes back.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The share is getting closer to its long-term support in weekly data, at USD 73.62, which offers good timing for buyers.

● Considering the small differences between the analysts' various estimates, the group's business visibility is good.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● The stock is close to a major daily resistance at USD 80, which should be gotten rid of so as to gain new appreciation potential.

Zonebourse.com 2017
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