Dollar Tree is an operator of discount variety stores offering merchandise at the fixed price. Its stores operate under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant and Dollar Bills. It buys approximately 58% to 60% of its merchandise domestically and imports the remaining 40% to 42%. Its domestic purchases include basic, seasonal, closeouts and promotional merchandise. It maintains a selection of products within variety store categories.

From a fundamental viewpoint, Dollar Tree is strong. It has the best Superformance rating. Analysts revised regularly upward their estimates and they expect EPS up 22% next year. Furthermore, net margin and operating margin are increasing in the coming years.

Following a bullish wave, the stock now shows a slight decline that should lead towards its USD 50 medium-term support. On this level, remobilization of buyer flows would allow an uptrend in the medium and long term. Moreover, the stock can benefit from the proximity of the lower trend line of the channel up to have a new impetus.

Active investors can take a long position in Dollar Tree on the crossover of 20-day moving average. The first target price will be USD 56.8. To avoid important losses, a stop loss will be fixed under the support currently tested at USD 50.