Dollar Tree (NASDAQ: DLTR) runs a network of about 3,500 discount variety stores in 48 states, operating under Dollar Tree, Deal$ and Dollar Bills banners. The stores offer housewares, toys, seasonal items, food, health and beauty aids, gifts and books. All items are priced at one dollar, or less. The outlets are generally located in high-traffic strip centers, anchored by mass merchandisers and supermarkets. Family Dollar Stores (NYSE: FDO) is a major competitor.

The firm pleased investors last week, when it reported Q1 EPS of 48 cents. That was six cents above the average Street estimate. Revenues of $1.05 billion were in-line with the company preannouncement. Management also guided Q2 EPS to 33-36 cents (36 cent consensus), Q2 revenues to $1.045-$1.075 billion ($1.04B consensus), FY09 EPS to $2.23-$2.39 ($2.33 consensus) and FY09 revenues to $4.52-$4.63 billion ($4.58B consensus). Wedbush Morgan and Friedman Billings subsequently reiterated "buy" ratings on the shares.

Many of life's little necessities work just as well when purchased at a bargain store, as they do when you buy them in a boutique. That's the basic allure behind those mall outlets that sell all manner of products for a dollar. One of the biggest such outfits in the U.S. refers to its shopping experience as the "Thrill of the Hunt."

Dollar Tree Stores (NASDAQ: DLTR) runs a network of about 3,300 discount variety stores in 48 states, operating under Dollar Tree, Deal$, Dollar Bills and Dollar Express banners. The stores offer housewares, toys, seasonal items, food, health and beauty aids, gifts and books. All items are priced at one dollar, or less. The outlets are generally located in high-traffic strip centers, anchored by mass merchandisers and supermarkets. Family Dollar Stores (NYSE: FDO) is a major competitor.

The firm pleased investors late last month, when it reported in-line numbers for Q2 and offered in-line to upside guidance for Q3 and FY08 results. Management also announced a $100 million accelerated share repurchase.

So, you run a chain of stores where everything costs a dollar and you are wondering how to advertise it. One of the biggest such outfits in the U.S. does so simply by referring to its shopping experience as the "Thrill of the Hunt."

Dollar Tree Stores (NASDAQ: DLTR) runs a network of about 3,300 discount variety stores in 48 states, operating under Dollar Tree, Deal$, Dollar Bills and Dollar Express banners. The stores offer housewares, toys, seasonal items, food, health and beauty aids, gifts and books. All items are priced at one dollar. The outlets are generally located in high-traffic strip centers, anchored by mass merchandisers and supermarkets. Dollar General (NYSE: DG) and Family Dollar Stores (NYSE: FDO) are major competitors.

The firm pleased investors earlier in the week, when it reported Q1 EPS of 38 cents and revenues of $975 million. Analysts had been looking for 37 cents and $966.4 million. Management also guided Q2 EPS to 29-32 cents (31 cent consensus), Q2 revenues to $960-$985 million ($963.64M consensus), FY08 EPS to $2.00-$2.12 ($2.10 consensus) and FY08 revenues to $4.28-$4.38 billion ($4.30B consensus). The news kept DLTR shares cycling through a positive three month trading channel. The price is currently at the base of that channel, where Momentum and Stochastic technical parameters suggest the potential for a rise back toward the top.

Brokers recommend the issue with four "strong buys," three "buys" and 10 "holds." Analysts expect a 13% average annual growth rate through the next five years. The DLTR Price to Cash Flow ratio (11.87), Price to Free Cash Flow ratio (18.00), EPS Growth rate (22.58%), Return on Assets (10.46%) and Return on Investment (12.83%) compare favorably with industry, sector and S&P 500 averages.

Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $23.90 and $44.12. A stop-loss of $36.95 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

Dollar Tree Stores (NASDAQ:DLTR) operates discount variety outlets, offering consumable merchandise, health and beauty products, toys, durable housewares and seasonal goods. The chain consists of 3,232 stores in 48 states. That's up from 2,923 stores a year ago.

Dollar Tree surprised investors last week, when it said it expects fourth quarter sales to reach the upper end of its previous guidance range ($1.28-$1.31 billion). Analysts had been looking for $1.29 billion. Shares popped above 50-day/90-day moving average resistance on the news and are now consolidating the gain in a bullish "pennant" pattern. Equities frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys," two "buys," ten "holds" and two "sells." The DLTR P/E ratio (18.69), PEG ratio (1.55), Price to Sales ratio (0.88), Price to Book ratio (2.84), Price to Cash Flow ratio (9.91), Sales Growth rate (14.26%), Return on Assets (9.99%) and Return on Investment (12.51%) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 400 MidCap Index. Institutional investors hold about 95% of the outstanding shares. Over the past twelve months, DLTR has traded between $23.90 and $32.78. A stop-loss of $27.95 looks good here. Note that the company's official fourth quarter sales release is scheduled for February 8th, before the open.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.