10 Stocks That Will Bounce Back According To Hedge Funds

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

Year-To-Date Loss: 50.83%

Number of Hedge Fund Investors In Q3 2024: 40

Dollar Tree, Inc. (NASDAQ:DLTR) is a mega American discount retail store operator. On the face of it, its business model would benefit the firm in today’s tight consumer environment where buyers have struggled with high prices. However, the reality is the opposite since Dollar Tree, Inc. (NASDAQ:DLTR)’s shares are down 51% year-to-date. The share price drop has been driven by the fact that a prolonged tightness in the consumer environment has spurred competition in the discount retail industry. Dollar Tree, Inc. (NASDAQ:DLTR)’s shares sank by 22% in September after it cut down full-year profit per share to a midpoint of $5.40 from an earlier $6.75. The firm, along with rival Dollar General, has faced off with big players such as Walmart and others such as Temu who have offered low-price products of their own during the tough economy. Amidst this environment, Dollar Tree, Inc. (NASDAQ:DLTR) has embarked on a multi-price strategy instead of a single-dollar price, and it has also started to offer higher-priced items to compete with general retailers.

Chartwell Partners mentioned Dollar Tree, Inc. (NASDAQ:DLTR) in its Q3 2024 investor letter. Here is what the fund said:

“Dollar Tree, Inc. (NASDAQ:DLTR) operates a chain of discount stores under the Dollar Tree and Family Dollar banners. Results fell short of expectations amid pressure on the lower-end consumer, which prompted management to reduce its outlook for the year.”