We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dollar General (DG) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
In the latest trading session, Dollar General (DG - Free Report) closed at $254.86, marking a +0.66% move from the previous day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.32%.
Coming into today, shares of the discount retailer had gained 8.32% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Dollar General will be looking to display strength as it nears its next earnings release. On that day, Dollar General is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 7.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.35 billion, up 8.1% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $11.47 per share and revenue of $37.59 billion. These results would represent year-over-year changes of +12.78% and +9.83%, respectively.
It is also important to note the recent changes to analyst estimates for Dollar General. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Dollar General currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 22.07. For comparison, its industry has an average Forward P/E of 20.35, which means Dollar General is trading at a premium to the group.
It is also worth noting that DG currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DG's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Dollar General (DG) Gains But Lags Market: What You Should Know
In the latest trading session, Dollar General (DG - Free Report) closed at $254.86, marking a +0.66% move from the previous day. This change lagged the S&P 500's 1.5% gain on the day. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.32%.
Coming into today, shares of the discount retailer had gained 8.32% in the past month. In that same time, the Retail-Wholesale sector lost 3.84%, while the S&P 500 lost 6.54%.
Dollar General will be looking to display strength as it nears its next earnings release. On that day, Dollar General is projected to report earnings of $2.90 per share, which would represent year-over-year growth of 7.81%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.35 billion, up 8.1% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $11.47 per share and revenue of $37.59 billion. These results would represent year-over-year changes of +12.78% and +9.83%, respectively.
It is also important to note the recent changes to analyst estimates for Dollar General. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Dollar General currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 22.07. For comparison, its industry has an average Forward P/E of 20.35, which means Dollar General is trading at a premium to the group.
It is also worth noting that DG currently has a PEG ratio of 1.81. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. DG's industry had an average PEG ratio of 1.74 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 217, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.