Dollar Tree will announce its earnings before the open on Thursday which makes it a good time to look at the seasonal pattern for the stock. Dollar Tree is a discount variety store in the US with a large chain of over 15000 stores. the 24 distribution centres help support the stores that operate in the US and Canada.
Dollar Tree has two marked seasonal periods ahead. From August 23 to October 14, shares have fallen on average -3.05% during that period with a greater than 50% loss percentage in a weaker summer period. However, from October 14 to November 25, Dollar Tree shares have gained on average over 10%.
So, does this make any deep dips in Dollar Tree worth buying ahead of a strong winter seasonal pattern?
Major Trade Risks: The main risk here is down to the earnings release as this will likely set the near-term direction for Dollar Tree as well as the outlook for US monetary policy.
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