We recently published a list of 10 Stocks To Trade Without Tariffs And Interest Rate Fears. In this article, we are going to take a look at where Dollar Tree, Inc. (NASDAQ:DLTR) stands against other stocks to trade without tariffs and interest rate fears.
The Federal Reserve this week decided to keep interest rates unchanged, causing Donald Trump to lash out at the Fed chief. Jerome Powell seemed satisfied with the current state of the economy and the job market. What he did not like was the high uncertainty prevailing in the market.
There’s a good reason why the uncertainty is causing problems for the Fed. It can’t reliably predict the future path of the economy if it doesn’t know what data to put in its models. This is pretty much the same problem that stock analysts have. With tariffs causing problems for American businesses, many investors are seeing their portfolios shrink.
In such a scenario, we decided to look at stocks that are largely protected from both tariffs and interest rates. This ‘protection’ comes from the fact that their bull thesis is unlikely to be impacted by either of these factors.
To come up with the list of stocks protected from tariffs and interest rates, we looked at the recently released list of Goldman Sachs’ top stocks with micro-driven volatility.
A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.
Dollar Tree, Inc. (NASDAQ:DLTR)
Dollar Tree, Inc. (NASDAQ:DLTR) is a retail discount store that operates through Family Dollar and Dollar Tree segments. The company offers a variety of merchandise, consumable merchandise, and seasonal goods.
The company’s business is improving as shown by its Q3 earnings. Dollar Tree, Inc. (NASDAQ:DLTR) reported a 3.5% rise in net sales with store traffic improving by 1.6%. Average ticket, the average amount spent by the customer per transaction, went up by 0.2% as compared to the previous year. Though the improvements are not huge, they still boosted the gross profit of the company by 7.6%. This is just a small step towards the eventual turnaround of the company.
Dollar Tree, Inc. (NASDAQ:DLTR) is considering shifting its focus to meaningful actions to improve business performance with things like multi-price offerings. Previously, the company sold everything for a dollar in its shop. More recently, this was bumped up to $1.25 but the multi-price offerings are where the growth lies. This will enable the company to be more flexible in terms of pricing. From the start of this project, the company has successfully tested its multi-price offering in 2300 stores and found favorable results. On average, the stores have shown a 3.3% growth in QoQ sales.
Overall, DLTR ranks 5th on our list of stocks to trade without tariffs and interest rate fears. While we acknowledge the potential of DLTR as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as DLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
