Dollar Tree Stock (DLTR) Leads S&P 500 as Wall Street Shrugs Off Tariff Fears

U.S.-based Dollar Tree stock jumped over 9% on Thursday, topping the S&P 500 gainers list.

Dollar Tree (DLTR) stock surged to the top of the S&P 500 index on Thursday amid renewed investor optimism, as Wall Street analysts downplayed concerns over U.S. tariffs. Despite broader market jitters, analysts remain confident in the discount retailer’s pricing power and resilient customer base, helping drive the stock higher.

Tariff Warning Weighs on Dollar Tree’s Outlook

Dollar Tree released its Q1 earnings report on June 4, triggering a sharp share decline of over 8% as investors weighed solid results against looming tariff concerns. In Q1, the discount retailer beat earnings expectations, with net sales climbing 11.3% year over year, driven by a 2.5% rise in customer traffic, notably from higher-income consumers.

However, the company warned of short-term earnings pressure due to tariffs and rising labor costs, projecting a 45%–50% decline in Q2 adjusted EPS before growth is expected to pick up later in the year.

Analysts Stay Bullish on DLTR Stock

Dollar Tree rebounded more than 9% on Thursday, largely fueled by a bullish upgrade from J.P. Morgan. Analyst Matthew Boss raised his rating on the stock to Buy from Hold and boosted his price target to $111 from $72, citing renewed confidence in the company’s long-term outlook.

Boss noted that despite short-term tariff concerns, the company is well-positioned to reduce capital expenditures, protect or even expand its margins, and deliver double-digit annual earnings growth over the coming years.

Supporting this view, Wells Fargo five-star-rated analyst Ed Kelly encouraged investors to “buy the weakness,” arguing that while Wednesday’s selloff was understandable due to tariff-related uncertainty, it overlooked Dollar Tree’s underlying strength. Kelly emphasized that the company is regaining relevance with consumers, and the recent performance signals a promising trajectory ahead. Kelly maintained his Buy rating on DLTR stock and lifted his price target from $90 to $105.

Is Dollar Tree a Good Stock to Invest In?

According to TipRanks, DLTR stock has received a Hold consensus rating, with five Buys, 12 Holds, and one Sell assigned in the last three months. The average Dollar Tree stock price target is $87.47, suggesting a potential downside of 9.5% from the current level.

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