Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, discount variety store operator Dollar Tree
With that in mind, let's take a closer look at Dollar Tree's business and see what CAPS investors are saying about the stock right now.
Dollar Tree facts
| Headquarters (founded) | Chesapeake, Va. (1986) |
| Market Cap | $11.9 billion |
| Industry | General merchandise stores |
| Trailing-12-Month Revenue | $6.8 billion |
| Management | CEO Bob Sasser (since 2004) CFO Kevin Wampler (since 2008) |
| Return on Equity (average, past 3 years) | 30.1% |
| Cash/Debt | $382.3 million / $265.5 million |
| Competitors |
99 Cents Only Stores Dollar General Family Dollar Stores |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 488 members who have rated Dollar Tree believe the stock will outperform the S&P 500 going forward.
Just last week, one of those bulls, kpoeppel, offered a balanced take on the Dollar Tree opportunity:
Proving to be profitable and growing. However, there's a lack of economic moat unless economies of scale can be achieved over other "dollar" stores. Very reasonable [price-to-earnings multiple] considering growth.
If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Dollar Tree may not be your top choice.
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