DLTR vs. TJX: Which Stock Is the Better Value Option?

Core Viewpoint - Investors in the Retail - Discount Stores sector should consider Dollar Tree (DLTR) and TJX (TJX) as potential undervalued stocks, with a focus on their valuation metrics and earnings outlooks [1]. Valuation Metrics - Both Dollar Tree and TJX currently hold a Zacks Rank of 2 (Buy), indicating positive revisions to their earnings estimates and improving earnings outlooks [3]. - Dollar Tree has a forward P/E ratio of 12.48, significantly lower than TJX's forward P/E of 26.95, suggesting that Dollar Tree may be undervalued [5]. - The PEG ratio for Dollar Tree is 2.14, while TJX's PEG ratio is 2.76, indicating that Dollar Tree has a more favorable earnings growth outlook relative to its price [5]. - Dollar Tree's P/B ratio stands at 2.13, compared to TJX's P/B of 16.98, further supporting the argument that Dollar Tree is a better value option [6]. Value Grades - Based on various valuation metrics, Dollar Tree has earned a Value grade of A, while TJX has received a Value grade of C, highlighting Dollar Tree's superior valuation profile [6].