Dollar General (DG) Ascends But Remains Behind Market: Some Facts to Note
The latest trading session saw Dollar General (DG) ending at $132, denoting a +0.17% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.96%. Elsewhere, the Dow gained 0.4%, while the tech-heavy Nasdaq added 1.3%.
Shares of the discount retailer witnessed a loss of 4.39% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.23% and the S&P 500's gain of 3.69%.
Market participants will be closely following the financial results of Dollar General in its upcoming release. The company is predicted to post an EPS of $1.73, indicating a 41.55% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $9.77 billion, indicating a 4.28% downward movement from the same quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dollar General. Such recent modifications usually signify the changing landscape of near-term business trends. 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 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, 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 past month, the Zacks Consensus EPS estimate has shifted 0.15% upward. Dollar General is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Dollar General is presently being traded at a Forward P/E ratio of 17.72. This signifies a discount in comparison to the average Forward P/E of 21.89 for its industry.
It is also worth noting that DG currently has a PEG ratio of 2.45. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Discount Stores industry stood at 2.12 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dollar General Corporation (DG) : Free Stock Analysis Report
