10 Best Grocery Stocks To Invest In Now

6. Dollar Tree, Inc. (NASDAQ:DLTR)

Number of Hedge Fund Holders: 38

Dollar Tree, Inc. (NASDAQ:DLTR) is a U.S.-based retail chain known for offering a wide range of products at various price points. The company’s offerings include consumables like food, health, and household items, as well as seasonal goods. With 24 distribution centers, Dollar Tree primarily serves budget-conscious shoppers.

Loop Capital recently maintained its Hold rating for Dollar Tree, Inc. (NASDAQ:DLTR), keeping a price target of $65. After conducting a pricing study of Dollar Tree Plus items—priced above $1.25—the firm found that Dollar Tree, Inc. (NASDAQ:DLTR) products are, on average, 16.7% cheaper than those at competing retailers, with the total basket price being 19.4% lower. Although the pricing gap has narrowed since June, the comparison wasn’t perfectly aligned due to changes in competing retailers, but Dollar Tree Plus remains competitively priced, a bright spot for the company amid challenging fundamentals.

To address rising competition, Dollar Tree, Inc. (NASDAQ:DLTR) reassessed its strategy, leading to the closure of around 970 underperforming Family Dollar stores by the end of 2023. However, Family Dollar saw an uptick in discretionary spending during Q2, and payroll savings are expected soon. For Q3, the company projects net sales between $7.4 billion and $7.6 billion, with adjusted earnings per share (EPS) between $1.05 and $1.15.