Back to top

Image: Bigstock

Dollar General (DG) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

Dollar General (DG - Free Report) closed at $123.29 in the latest trading session, marking a +1.24% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.2%. Meanwhile, the Dow experienced a drop of 0.18%, and the technology-dominated Nasdaq saw a decrease of 0.59%.

Heading into today, shares of the discount retailer had gained 4.38% over the past month, lagging the Retail-Wholesale sector's gain of 9.38% and the S&P 500's gain of 7.87% in that time.

The upcoming earnings release of Dollar General will be of great interest to investors. The company's earnings report is expected on December 7, 2023. It is anticipated that the company will report an EPS of $1.23, marking a 47.21% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.67 billion, up 2.13% from the year-ago period.

DG's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $38.64 billion. These results would represent year-over-year changes of -30.15% and +2.11%, respectively.

Investors might also notice recent changes to analyst estimates for Dollar General. Such recent modifications usually signify the changing landscape 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.21% increase. At present, Dollar General boasts a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Dollar General is at present trading with a Forward P/E ratio of 16.32. This expresses a discount compared to the average Forward P/E of 23.91 of its industry.

It is also worth noting that DG currently has a PEG ratio of 2.25. 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 had an average PEG ratio of 2.12 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 38% echelons 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dollar General Corporation (DG) - free report >>

Published in