The Coronavirus pandemic is crippling economies around the world right now. The United States has the most number of cases of the deadly disease. Thus, it is also the country suffering the most in terms of its economy.
Millions of people in the United States have lost their jobs. Many businesses are struggling to generate enough revenue to sustain themselves. Thus, it is becoming more and more difficult for people to earn enough incomes right now. Due to this spending patterns are completely changing.
Spending patterns in the US are now moving to safer and cheaper options. People are spending their money mostly on essentials now. At a time like this, companies like Dollar Tree which is a discount retail store chain have been doing really well.
Dollar Tree Stock Price Surges
Dollar Tree stock is on the NASDAQ stock exchange. On Wednesday, 27 May 2020, the stock closed at a price of 87.53 USD. The company rose sharply in pre-market trading on Thursday, 28 May 2020.
The company’s stock opened on the day at a price of 96.99 USD. The stock has been relatively stable since then but has still risen a little. As of 14:21 GMT on Thursday, Dollar Tree’s stock is at a price of 97.29 USD. This is a rise of 9.76 USD or 11.15% on the day. The stock has been consistently on the rise during this week.
Why Did The Stock Surge?
Dollar Tree has been performing very well during the time of the pandemic. The company reported its first-quarter earnings for 2020 on Thursday. Dollar Tree had a net income of $247.6 Million in the quarter with total revenue of $6.29 Billion. The revenue is up from $5.81 Billion in the same period last year.
The company’s earnings per shares were $1.04 per share. Market Analysts were expecting the company to have sales of $6.14 Billion or 85 cents per share. Since the company much better than these expectations, the company’s stock surged.
Dollar Stock: Covid-19 Impact!
The company was at a price of 93.89 USD on 21 February 2020. Initially, due to the Coronavirus pandemic, the company fell to its 2020 low at 65.57 USD but since then, the company has been rallying and hit its highest price of 2020 on Thursday itself at a price of 99.20 USD.