Target (TGT) shares sold off hard Wednesday after the retailer surprised Wall Street with below-par first quarter same store sales growth, sending Dollar Tree (DLTR) shares down in sympathy. David Miller, portfolio manager for the Catalyst Insider Buying Fund (INSAX), said the dollar store chain will fare just fine over the long run due to heavy insider buying and a recession resistant price-point. 'Dollar Tree's top executives are taking money out of their own pockets to buy more stock which is always a good sign,' said Miller. 'And when companies like Macy's (M) and Nordstrom (JWN) were getting slammed in 2008, Dollar Tree was actually up over 60 percent because when times get tough people shop more at dollar stores, not less.' Dollar Tree's same store sales are estimated to be up 2 percent for its fiscal 2016 first quarter, compared to Target's 1.2 percent rise.
More from Video
Amid the Selling, Here's the Big Question Now
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
One Tweet Pulls the Rug Out From Under the Indexes
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
A Technical Look at the New Dow Jones Industrial Average
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
Conagra Brands Looks Tastier After Its Upgrade to Buy
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.
Biogen Bulls Get a Lift From Quant Upgrade and Strengthening Charts
Breaking down an approach to the long side of this biotech stock.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.