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Dollar General (DG) Gains As Market Dips: What You Should Know
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Dollar General (DG - Free Report) closed at $167.05 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Prior to today's trading, shares of the discount retailer had lost 2.72% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.69% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release, which is expected to be August 31, 2023. In that report, analysts expect Dollar General to post earnings of $2.50 per share. This would mark a year-over-year decline of 16.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.94 billion, up 5.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $39.31 billion, which would represent changes of -6.09% and +3.86%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Dollar General is currently a Zacks Rank #4 (Sell).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 16.48. For comparison, its industry has an average Forward P/E of 24.25, which means Dollar General is trading at a discount to the group.
Investors should also note that DG has a PEG ratio of 2.08 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow DG in the coming trading sessions, be sure to utilize Zacks.com.
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Dollar General (DG) Gains As Market Dips: What You Should Know
Dollar General (DG - Free Report) closed at $167.05 in the latest trading session, marking a +1.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.7%. At the same time, the Dow lost 0.54%, and the tech-heavy Nasdaq lost 1.17%.
Prior to today's trading, shares of the discount retailer had lost 2.72% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.69% and the S&P 500's gain of 2.35% in that time.
Investors will be hoping for strength from Dollar General as it approaches its next earnings release, which is expected to be August 31, 2023. In that report, analysts expect Dollar General to post earnings of $2.50 per share. This would mark a year-over-year decline of 16.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.94 billion, up 5.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.03 per share and revenue of $39.31 billion, which would represent changes of -6.09% and +3.86%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dollar General. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Dollar General is currently a Zacks Rank #4 (Sell).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 16.48. For comparison, its industry has an average Forward P/E of 24.25, which means Dollar General is trading at a discount to the group.
Investors should also note that DG has a PEG ratio of 2.08 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.19 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 198, which puts it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow DG in the coming trading sessions, be sure to utilize Zacks.com.