It has been getting increasingly difficult to tell what’s a good investment and what’s simply a flash in the pan.
Several healthcare and pharmaceutical stocks that were darlings of the past several years, for example, are some of the worst performers of 2025 so far.
Related: Popular outdoor retailer closing all stores, no bankruptcy
Moderna is down over 43% on the year, while United Health is down over 45%.
A couple of years ago, however, both of these stocks would have been easy recommendations to your neighbor or curious friend at dinner.
Several key factors have made investing a murkier process nowadays.
A higher cost of living and persistent inflation has shied many investors away from big swings.
And the ongoing drama between China and the U.S. as tariffs are brought on and off the table makes things like trade and value even more complicated.
People shop at a Dollar Tree. Lead
Image source: Scott Olson/Getty Images
Top S&P performers are confounding
On the other hand, some of the top performing stocks in the S&P in 2025 have been a smattering across multiple sectors.
Palantir is up over 70% in 2025 as of this writing.
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Philip Morris is up about 40%.
And Uber is up 27%.
For investors seeking value, however, it can be hard to justify buying some of the highest flying stocks at what could be their near-term highs.
So some fund managers are looking for areas of opportunity, and some of those pockets might be in the embattled retail space.
Hedge fund manager buys Dollar Tree
So David Einhorn’s DME Capital Management has acquired 440,000 shares of Dollar Tree (DLTR) .
The stake was likely acquired for around $40.5 million. Dollar Tree was trading at an average price of $92 during Q1 2025, when the position was opened.
Analysts have set a one-year price target for Dollar Tree at $85.01, which indicates a minor downside, though Einhorn is known for identifying value targets.
Related: Popular retailer raises red flag, multi-million dollar write-down
Dollar Tree is in the midst of a turnaround plan.
In 2015 it acquired rival Family Dollar for approximately $9 billion. In 2025, it sold Family Dollar for a steep loss at $1 billion.
About 900 Family Dollar stores will be shuttered around the U.S. while Dollar Tree opens up about 300 new stores.
It will also increase price points up to about $7 and begin offering more high-interest inventory.
Dollar Tree currently trades at about $86.58 as of this writing.
