Dollar Tree is an American chain of discount variety stores, selling merchandise for $1 or less. It was founded in 1986 and is headquartered in Chesapeake, Virginia. Dollar Tree operates over 15,000 stores in 48 U.S. states and 5 Canadian provinces. It sells a wide range of products including household items, food and snacks, health and beauty aids, toys, gifts, party supplies, books, and seasonal items.
In a recession discount stores can tend to do well as consumers leave more expensive retailers and come searching for bargains at cheaper stores. While the debate continues about if/when the US will head into a recession will stocks like Dollar Tree find dip buyers?
Historically the stock tends to gain over this period of time with an 80% win percentage between February 9 and March 29 over the last 15 years. So, does this mean that Dollar Tree will gain again this year?
Major Trade Risks: The major trade risk here is that the seasonal pattern does not repeat itself again this year.
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