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Dollar General (DG) Stock Moves -1.12%: What You Should Know

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Dollar General (DG - Free Report) closed the most recent trading day at $116.02, moving -1.12% from the previous trading session. This change was narrower than the S&P 500's daily loss of 1.34%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.62%.

Coming into today, shares of the discount retailer had gained 1.94% in the past month. In that same time, the Retail-Wholesale sector lost 4.5%, while the S&P 500 lost 1.57%.

Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. In that report, analysts expect Dollar General to post earnings of $1.28 per share. This would mark a year-over-year decline of 45.06%. Simultaneously, our latest consensus estimate expects the revenue to be $9.7 billion, showing a 2.45% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.64 per share and revenue of $38.73 billion, which would represent changes of -28.46% and +2.33%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Dollar General. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.05% decrease. At present, Dollar General boasts a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Dollar General has a Forward P/E ratio of 15.36 right now. This represents a discount compared to its industry's average Forward P/E of 21.94.

It is also worth noting that DG currently has a PEG ratio of 2.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.12 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 165, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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