Dollar Tree's (DLTR) recent price action honestly makes no sense. Despite being an essential business providing food and drink to millions of consumers during this pandemic, the stock has performed really poorly relative to the rest of the market. Even now, in the midst of the market recovery, DLTR is still a massive underperformer compared to other essential stores like Walmart (WMT), Kroger (KR), etc. However, with a solid turnaround plan, reasonable valuation and near immunity to economic recessions, we believe DLTR is a long-term buy at this price.

Coronavirus

The recent coronavirus pandemic has been a major challenge to many retailers around the US as stay-at-home orders kick in around the world and as overall retail traffic drops drastically. Not all stores are the same, however, with essential stores generating substantial amounts of revenue from panic buying of goods and services.

READ FULL ARTICLE HERE