Micron Technology, Inc. (MU), Lumber Liquidators Holdings Inc (LL), Dollar Tree, Inc. (DLTR): Three Stocks I’m Buying on Upgrades

What Dollar Tree, Inc. (NASDAQ:DLTR) has been able to accomplish is absolutely incredible. The company has an operating margin of 12.59%, yet sells everything in its store for only $1. Not only does it have general costs associated with building and maintaining stores, but also has the same business costs as every other company and finds quality products to sell for $1!

The company is the quintessential example of operational efficiency, yet continues to grow in the high single digits annually. In terms of valuation, it trades at 18 times earnings with a price/sales of 1.45 (consistent with S&P 500). Personally, I think Dollar Tree, Inc. (NASDAQ:DLTR) is a “must-have” in anyone’s portfolio, and a company that will outperform regardless of the economy because of its value pricing. Thus, I couldn’t agree more with JPMorgan and believe that Dollar Tree, Inc. (NASDAQ:DLTR) is a “buy.”

Final thoughts

What I really like about these three stocks is that you get a little bit of everything as a collection. You get technology, retail, and construction/home improvement. You also get a turnaround story combined with growth and consistency. Personally, I don’t like one more than the other, as I believe that each stock serves a different purpose within your portfolio; which is the goal of investing in a new age market. As a result, I suggest assessing what each stock, or stocks alike, add to your portfolio and then determining if it’s an investment need.

The article Three Stocks I’m Buying on Upgrades originally appeared on Fool.com and is written by Brian Nichols.

Brian Nichols is long DLTR. The Motley Fool recommends Lumber Liquidators. The Motley Fool owns shares of Lumber Liquidators. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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