2 of 6
BACKNEXT
Dollar Tree
(DLTR) P/E: 12.8, EPS Gr: 15%

Dollar Tree is like the friend you've known forever but haven't given much thought to--until one day, the kid next door has grown unexpectedly attractive.

Dollar stores have gained many admirers: new bargain-hunters. "They're getting fresh eyes," said Karen Short, an analyst at Friedman, Billings, Ramsey & Co. "They've had the stigma of being an unpleasant shopping experience, but now these stores are a budget destination." To that end, sales at Dollar Tree rose 9% in its most recent quarter.

While shares of many stores in the buck-or-less sector have done well during the recession - Family Dollar is up 32.7% during the last year and 99¢ Only Stores is up 31.4% - Dollar Tree has done even better. Its stock has soared 57.5% in the last twelve months. Still, Dollar Tree's stock remains a bargain: shares trade for only about 13 times earnings estimates for this fiscal year.

Short says the shopping experience at Dollar Tree is better than its competitors: more exciting discretionary merchandise, brighter lighting, visually appealing displays and favorable store locations.

The prospect of a continued recession is bad news for most retailers, but thrift should be sexy for Dollar Tree.

NEXT: Fluor

Last updated June 15 2009: 10:19 AM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
7 epic gadget flops From the Microsoft Zune to the BlackBerry PlayBook, the Fire Phone is following in some unfortunate footsteps. More
What I gave up to save $1 million They may have million dollar-plus nest eggs, but they had to make some big sacrifices along the way to get there. Here's what these four savers did without in order to save seven-figures retirement. More
World's Top Employers for New Grads For an exclusive CNNMoney list, research firm Universum Global surveyed college students around the world to see where they most want to work. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.