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 has earned a respected four-star ranking.
With that in mind, let's take a closer look at Dollar Tree and see what CAPS investors are saying about the stock right now.
Dollar Tree facts
Chesapeake, Va. (1986)
General merchandise stores
CEO Bob Sasser (since 2004)
CFO Kevin Wampler (since 2008)
Return on Equity (average, past 3 years)
$222.4 million / $264.3 million
Family Dollar Stores
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 92% of the 514 members who have rated Dollar Tree believe the stock will outperform the S&P 500 going forward.
Best in class with a substantial growth runway still remaining. 5-10% yearly storefront expansion expected and a [PEG ratio] of 0.9. 32% reduction in shares over the last decade and the best cash to debt ratio in the dollar store industry.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Dollar Tree may not be your top choice.
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The article Why Dollar Tree Is Poised to Grow originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.