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. 24 distribution centres help support the stores which operate in the US and Canada.
Dollar Tree has two marked seasonal periods ahead. Firstly, from Aug 23 to Oct 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 through 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 risks 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.
Remember don’t just trade it, Seasonax it!
