InvestBattle | Target vs Dollar Tree

December 29, 2023by Anton Tryhubchenko

As we reported in last week’s issue the Broadline Rerail industry (+26.4%) has shown the best performance in the S&P 500 over the past three months.

The largest companies in this industry (by market capitalization): Target ($67.4B), an American retail giant, and Dollar Tree ($29.7B), which has 15K discount stores in the US and Canada.

Based on the latest quarterly reporting data, we analyzed the profitability, strength, and efficiency criteria for each company using the methodology of Stanford University professor Joseph Piotroski.

As you can see, from the point of fundamental valuation, both companies are currently performing quite strongly. Both Target and Dollar Tree look attractive for medium- and long-term investments.

In addition, over the past 3 months, Dollar Tree stock has risen by +30% and Target by +24% (the S&P 500 index is up +10%). Dollar Tree has not only outperformed its closest competitor, but also demonstrated better results compared to the index.

So, there is no single winner in today’s battle. Therefore, it is up to each individual to decide which criteria to give preference to when making an investment decision, taking into account their goals and individual risk tolerance.
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