Dollar Tree (DLTR) has continued to stay in Over-Valuation territory as the result of a quick move to the upside that started in 2008 and accelerated around early 2014 Fall. This recent move pushed DLTR well above the Fair Value range with a pull-back triggered in 2015 May and again in 2015 June. We do not believe the company has the staying power to remain at this level. The company benefitted greatly from the economic slowdown created from The Great Recession. However, as the economy moves out of the sluggish growth environment with wages advancing, middle market, upper market and luxury retail establishments should perform better. It may be time to say thank-you to Dollar Tree and move into higher end retailers.
Dollar Tree Moves Into Over Valuation Territory
About the Author: Steve Albrecht
Steven Albrecht was the President and CEO of Charter Trust Company from 2001-2016