A day after Dollar Tree (DLTR) fell from over $80 to as low as $61.55, shares added 7.72% on Thursday. Investors are betting that higher settlement and litigation costs are one-time charges.
DLTR has high risks. Its balance sheet is weakening. Although it holds $570 million in cash and cash equivalents, it holds $3.4 billion in debt. The retailer needs to increase same-store sales to boost cash flow. For now, its leverage is 2.5 times. It will retain its investment-grade creditworthiness for now.
Tesla (TSLA) added 4.9% to close at $230.17 yesterday. Markets are not concerned that Chinese automakers increased their market share in July. Foreign auto firms have a 33% market share in China, down from 53% two years ago. BYD (BYDDF), ZEKKR Intelligent (ZK), Li Auto (LI), Nio (nio0, and XPeng (XPEV) are among the firms growing delivery volumes.
Markets are betting that Tesla will pivot its growth from EVs to Robo taxis.
Selling pressure accelerated for shares of Copart (CPRT). The company posted weak quarterly profits. It experienced higher costs. Its revenue of $1.07 billion, up by 7.2% Y/Y, was not enough to offset growing expenses.
Investors may take advantage of CPRT stock on sale. The online vehicle auction market has strong growth prospects.