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Dollar General (DG) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw Dollar General (DG - Free Report) ending at $120.94, denoting a +1.23% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.18% for the day. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.76%.

The discount retailer's shares have seen an increase of 14.5% over the last month, surpassing the Retail-Wholesale sector's loss of 4.94% and the S&P 500's loss of 3.35%.

Investors will be eagerly watching for the performance of Dollar General in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.28, showcasing a 45.06% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $9.7 billion, indicating a 2.45% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.64 per share and revenue of $38.73 billion. These totals would mark changes of -28.46% and +2.33%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Dollar General. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.05% downward. Right now, Dollar General possesses a Zacks Rank of #5 (Strong Sell).

From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 15.64. Its industry sports an average Forward P/E of 20.92, so one might conclude that Dollar General is trading at a discount comparatively.

Also, we should mention that DG has a PEG ratio of 2.16. 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 average PEG ratio for the Retail - Discount Stores industry stood at 2.15 at the close of the market yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 160, positioning it in the bottom 37% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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