A poor performer in 2024 so far, Dollar Tree (NASDAQ:DLTR) stock needs to pick a direction — preferably, to the upside.
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A poor performer in 2024 so far, Dollar Tree (NASDAQ:DLTR) stock needs to pick a direction — preferably, to the upside. However, an imminent rally is unlikely in light of the retailer’s financial results and major announcement.
Even though Dollar Tree sells discounted products, it doesn’t mean DLTR stock is a bargain. Bear in mind that Dollar Tree also owns the Family Dollar brand, which has weighed on the company’s top and bottom lines for years.
For what it’s worth, Dollar Tree remains profitable despite Family Dollar’s lackluster performance. During a time of sticky inflation and economic uncertainty, Dollar Tree should continue to generate decent revenue from low-priced goods.
However, whether the company can engineer a turnaround and bring more investors into the fold is another story.
“Dollar Tree has been on a multi-year journey to help the Company fully achieve its potential,” declared Chief Executive Rick Dreiling in the recent corporate announcement.
Apparently, that “journey” may include effectively giving up on the Family Dollar brand.
As a proud cheapskate myself, I can attest that there’s a vast difference between Dollar Tree and Family Dollar stores. Regardless of what city I’m in, when I see one of those green Dollar Tree store signs, I know exactly what I’ll see inside: a wide array of products, each costing $1.
