Why Dollar Tree Inc. (DLTR) Surged On Thursday?

We recently published a list of 10 Stocks Jump, Defy Market Uncertainties on Thursday. In this article, we are going to take a look at where Dollar Tree Inc. (NASDAQ:DLTR) stands against other stocks that jumped, defying market uncertainties on Thursday.

The stock market extended losses on Thursday, with all the major indices ending in the red as investors continued to sell off positions to minimize risks from the ongoing trade tensions globally.

The tech-heavy Nasdaq fell the hardest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent.

The broader market decline was mainly weighed down by shares in automakers following President Donald Trump’s announcement of a 25-percent tariff on all vehicles imported to the US.

Meanwhile, 10 companies defied a broader market pessimism amid fresh company developments that buoyed buying appetite. Two gold miners were particularly notable as investors sought safer assets amid the economic uncertainties.

In this article, we listed Thursday’s 10 best performers and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.

A shopper browsing through a discount retailers merchandise aisle filled with a wide variety of items.

Dollar Tree Inc. (NASDAQ:DLTR)

Dollar Tree rose for a second day on Thursday, adding 11.18 percent to its valuation to end at $76.95 apiece as investors resumed bargain-hunting following announcements that it was divesting its struggling business unit for $1 billion.

According to the company, it inked an agreement with Brigade Capital Management and Macellum Capital Management for the sale of Family Dollar for $1 billion. Albeit an 88-percent discount from the $8.5 billion it allocated in 2015 to acquire the business, the sale is expected to unlock value for DLTR shareholders and position Family Dollar for future success.

“Under the experienced, dynamic leadership of Family Dollar President Jason Nordin, and with the financial support of Brigade and Macellum, Family Dollar will be well-positioned for growth as a private company. With the support of a dedicated team, Family Dollar will be able to strengthen its commitment to providing affordable and essential goods to customers so they can do more with less,” said DLTR CEO Mike Creedon.

The transaction is expected to close in the second quarter of the year.

Overall, DLTR ranks 4th on our list of stocks that jumped, defying market uncertainties on Thursday. While we acknowledge the potential of DLTR as an 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 trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.