Here’s What Boosted Dollar Tree (DLTR) in 2025

Core Viewpoint - Broyhill Asset Management's fourth-quarter 2025 investor letter emphasizes the significant market concentration on artificial intelligence, leading to underperformance in many sectors, while the portfolio trades at a substantial discount compared to the broader market [1]. Company Summary - Dollar Tree, Inc. (NASDAQ:DLTR) operates a chain of discount stores and has a market capitalization of $26.047 billion [2]. - As of February 25, 2026, Dollar Tree's stock closed at $127.70 per share, with a one-month return of 8.86% and a 52-week gain of 74.55% [2]. - The company was highlighted as a major contributor to Broyhill's portfolio performance, with the stock recovering due to mispriced market perceptions and improvements in business execution [3]. Investment Insights - Broyhill Asset Management noted that Dollar Tree's turnaround has been uneven, but the simplification of its business model and execution improvements have led to a belief that its normalized earnings power is significantly higher than market expectations [3]. - Despite recognizing Dollar Tree's potential, Broyhill suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Dollar Tree [4].