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Dollar General (DG) Outpaces Stock Market Gains: What You Should Know
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Dollar General (DG - Free Report) closed the most recent trading day at $219.32, moving +0.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the discount retailer had lost 4.56% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.56% and lagged the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release, which is expected to be March 16, 2023. In that report, analysts expect Dollar General to post earnings of $2.99 per share. This would mark year-over-year growth of 16.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.25 billion, up 18.5% from the year-ago period.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 6.05% lower. Dollar General is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 19.16. For comparison, its industry has an average Forward P/E of 22.22, which means Dollar General is trading at a discount to the group.
Investors should also note that DG has a PEG ratio of 1.74 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dollar General (DG) Outpaces Stock Market Gains: What You Should Know
Dollar General (DG - Free Report) closed the most recent trading day at $219.32, moving +0.75% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.07%. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the discount retailer had lost 4.56% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5.56% and lagged the S&P 500's loss of 2% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release, which is expected to be March 16, 2023. In that report, analysts expect Dollar General to post earnings of $2.99 per share. This would mark year-over-year growth of 16.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.25 billion, up 18.5% from the year-ago period.
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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 6.05% lower. Dollar General is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 19.16. For comparison, its industry has an average Forward P/E of 22.22, which means Dollar General is trading at a discount to the group.
Investors should also note that DG has a PEG ratio of 1.74 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.93 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.