Dollar Tree (DLTR) Stock Surges in 2025 After Impressive Q3 Earnings Beat Expectations

Dollar Tree, Inc. (DLTR) shares surged more than 5% in trading following the release of their third quarter 2024 financial results, which outperformed analyst expectations.

Highlights from Q3 2024 Results

• Revenue climbed 7.5% to $6.18 billion, surpassing consensus estimates by $60 million.
• GAAP earnings per share reached $1.39, beating forecasts by 23 cents.
• Comparable store sales increased 5.1%, higher than the anticipated 4.7%.
• Gross margins improved by 150 basis points to 31.2% of sales, signaling strong operational efficiency.

Management refrained from issuing formal guidance for Q4 but indicated that comparable sales are trending ahead of expectations. This positive momentum contributed to a breakout from the stock's price channel, which had been in place since mid-September.

Technically, the stock’s Relative Strength Index (RSI) remains neutral at 61.39, and the Moving Average Convergence Divergence (MACD) indicator is flat, suggesting potential for further upward movement in the near term.

Trading Insight

A price channel forms when a stock's price oscillates between two parallel trendlines. For Dollar Tree, a decisive close above resistance at $98.11 would confirm a breakout and could pave the way toward the next resistance level near $110.45. Conversely, failure to break out may keep the stock range-bound between $94.41 and $98.11. A breakdown below $94.41 could lead to a decline toward the 200-day moving average at $88.51 or previous lows, though this scenario appears less probable.

Conclusion

Following strong Q3 2024 earnings that beat analyst estimates, Dollar Tree shares have experienced a notable rally. With technical indicators in neutral zones and a breakout from a bullish price channel, the stock shows promising potential for further gains.

The author does not hold any positions in the mentioned stock except through passive index funds.

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