Dollar Tree, Inc. (DLTR)’s Key Thing To Watch For

The big question for Dollar Tree, Inc. (NASDAQ:DLTR) and the rest of the deep-discount industry is whether it can continue to beat out traditional discounters like Wal-Mart Stores, Inc. (NYSE:WMT). The companies did a great job of undercutting Wal-Mart in the last recession, but if the economy starts to slip again, you can expect more of a fight from Wal-Mart and similar discount retailers to retain more of their business.

In Dollar Tree’s earnings, look to compare both results and strategic visions against those of its competitors. Unless Dollar Tree, Inc. (NASDAQ:DLTR) makes extensive efforts to advance its own growth, it could easily fall behind rivals that haven’t hesitated to innovate recently, and that could send its share price back downward.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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