Dollar Tree Tanks on Earnings: Is the Stock Too Cheap to Pass Up?

The U.S. economy isn't in a recession yet, but there is no shortage of consumers who are struggling right now. Multiple years of price increases and higher housing costs are wearing down low-income consumers who shop at dollar stores. While you might assume a stock like Dollar Tree (NASDAQ: DLTR) should be fairly resilient in times like these, even it's having trouble generating much growth.The dollar store chain's recent earnings numbers weren't impressive, and the stock hasn't been trading this low in years. Here's a look at why investors are so bearish on Dollar Tree, and whether the beaten-down stock could be worth buying right now.Last week, shares of Dollar Tree crashed by more than 20% after investor were less than impressed with the retailer's latest quarterly numbers. Same-store sales for the period ending Aug. 3 were up just 0.7% compared to the same quarter last year. CEO Rick Dreiling says the company is facing "immense pressures from a challenging macro environment" as consumer demand proves to be underwhelming, even for the company's low-priced goods. Further exacerbating concerns for investors were the discount retailer's disappointing profits, which totaled just $132.4 million and which fell by 34% year over year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool