Dollar Tree is an operator of discount variety stores. Co. operates in two reporting business segments: Dollar Tree and Family Dollar. The Dollar Tree segment is an operator of discount variety stores providing merchandise at the fixed price point of $1.25. The merchandise mix in Co.'s Dollar Tree stores consists of: consumable merchandise, variety merchandise, and seasonal goods. The Family Dollar segment operates a chain of general merchandise retail discount stores providing consumers with a selection of merchandise in convenient neighborhood stores. The merchandise mix in Co.'s Family Dollar stores include: consumable merchandise, home products, and apparel and accessories merchandise.
When researching a stock like Dollar Tree, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from DLTR Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for DLTR stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the DLTR 200 day moving average ("DLTR 200 DMA"), while one of the most popular "shorter look-backs" is the DLTR 50 day moving average ("DLTR 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Dollar Tree. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the DLTR 200 DMA and the DLTR 50 DMA, we get a moving average convergence divergence indicator ("DLTR MACD"). The DLTR MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis