In the latest trading session, Dollar General (DG) closed at $164.41, marking a +0.95% move from the previous day. This change outpaced the S&P 500's 0.39% loss on the day. Meanwhile, the Dow lost 0.95%, and the Nasdaq, a tech-heavy index, lost 0.83%.
Coming into today, shares of the discount retailer had gained 3.86% in the past month. In that same time, the Retail-Wholesale sector lost 0.14%, while the S&P 500 lost 0.1%.
Wall Street will be looking for positivity from DG as it approaches its next earnings report date. In that report, analysts expect DG to post earnings of $1.38 per share. This would mark year-over-year growth of 9.52%. Our most recent consensus estimate is calling for quarterly revenue of $6.91 billion, up 7.73% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $6.61 per share and revenue of $27.66 billion. These results would represent year-over-year changes of +10.72% and +7.92%, respectively.
Investors might also notice recent changes to analyst estimates for DG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.21% higher within the past month. DG is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, DG is holding a Forward P/E ratio of 24.64. Its industry sports an average Forward P/E of 23.95, so we one might conclude that DG is trading at a premium comparatively.
Also, we should mention that DG has a PEG ratio of 2.56. 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. DG's industry had an average PEG ratio of 2.48 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 13, putting it in the top 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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