12 Most Undervalued Retail Stocks To Buy According to Analysts

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

Forward P/E: 11.85

Analyst Upside: 23.05%

Dollar Tree (NASDAQ:DLTR) operates discount variety stores, with its business segments including Dollar Tree and Family Dollar. The Dollar Tree segment operates 15 distribution centers in the United States and two in Canada and offers a variety of merchandise, consumable merchandise, and seasonal goods. The company holds a competitive market advantage as it provides high-quality, low-cost products that individuals and families need in a comfortable and convenient shopping environment.

While interest rates and other macro pressures affected the buying behavior of the company’s customers, its operational model holds the ability to compete. Dollar Tree’s (NASDAQ:DLTR) differentiated business model and long-term strategy of multi-price expansion and store growth acceleration lend it further competitive advantages in the market.

The company reopened more than 100 former 99 Cents Only locations as Dollar Trees, with plans to open the remaining 56 by the end of the year. These 99 Cents Only locations are high-quality, proven stores in strong markets with great potential. Through these openings, the company is expanding its footprint across California and the Southwest.

Dollar Tree’s (NASDAQ:DLTR) fiscal Q2 2024 earnings show that the company attracted 2.8 million net new shoppers over the past 12 months. It is also undertaking efforts to improve its assortment by emphasizing more relevant items with higher purchase frequency.