10 Oversold Growth Stocks to Invest In

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

Forward P/E (As of 14 October): 10.95x

% Decline on a YD Basis: ~53%

Number of Hedge Fund Holders: 38

Dollar Tree, Inc. (NASDAQ:DLTR) operates discount retail stores.

Dollar Tree, Inc. (NASDAQ:DLTR) adopted a series of strategic initiatives, which should improve its competitive position and financial performance. Its multi-price point strategy at Dollar Tree stores demonstrates a departure from the company’s long-standing $1 price point model. Wall Street believes that this strategy should help its topline and result in margin expansion moving forward.

The expanded product assortment can help attract a broader customer base, which includes those who were earlier shopping at the higher-priced discount retailers. This strategy can enable Dollar Tree, Inc. (NASDAQ:DLTR) to navigate inflationary pressures and challenges related to rising costs, thereby, maintaining margins. Moving forward, strong brand recognition and an extensive store network are expected to fuel revenue growth. In the recent earnings call, Dollar Tree, Inc. (NASDAQ:DLTR highlighted the success of its multi-price expansion and store growth acceleration strategy.

The company adjusted its FY 2024 consolidated net sales outlook range to $30.6 billion – $30.9 billion. Dollar Tree, Inc. (NASDAQ:DLTR) expects adjusted diluted EPS of $5.20 to $5.60. As per Wall Street, the shares of the company have an average price target of $84.00.

Baird Equity Asset Management, an investment management company, released its second quarter 2024 investor letter. Here is what the fund said:

“Consumer discretionary performance was the quarter’s largest detractor. Thematically, our holdings in retail and in particular value retail hurt due to greater-than-anticipated operating challenges amid the persistent inflationary environment. In addition, our expectation that value-based retailers would benefit from consumers trading down, spurring revenue and new customer growth, has not yet materialized in a meaningful way. Of note, Dollar Tree, Inc. (NASDAQ:DLTR) and Five Below delivered disappointing performance.”