Why Dollar Tree Inc. (DLTR) Went Up Last Week?

We recently published a list of 10 Stocks Outperform Broader Market Last Week. In this article, we are going to take a look at where Dollar Tree Inc. (NASDAQ:DLTR) stands against other stocks that outperformed broader market last week.

Wall Street’s main indices traded lower week-on-week as investor sentiment continued to be dragged by the ongoing trade tensions globally.

The tech-heavy Nasdaq was down by 2.59 percent versus its level on March 21. Meanwhile, the S&P 500 declined by 1.5 percent and the Dow Jones dropped by 0.956 percent.

Ten individual stocks, on the other hand, managed to stay stronger, three of which were particularly notable as funds flocking to gold assets spilled over into their stocks.

In this article, we listed last week’s 10 top 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 trading volume.

Why Dollar Tree Inc. (DLTR) Went Up Last Week?

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

Dollar Tree Inc. (NASDAQ:DLTR)

Dollar Tree saw its share prices increase by 8.99 percent last week to finish at $72.75 apiece versus $66.75 on March 21 as investors snapped up shares in the company following the planned sale of its struggling Family Dollar subsidiary.

Late last week, DLTR announced that it was divesting Family Dollar for $1 billion,  a figure that was an 88-percent discount from the $8.5 billion shelled out in 2015 to acquire the business.

DLTR said it reached an agreement with Brigade Capital Management and Macellum Capital Management to acquire the business, which it believed would best unlock value for DLTR shareholders and position the unit 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 be completed in the second quarter of the year.

Overall, DLTR ranks 9th on our list of stocks that outperformed broader market last week. 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.