Dollar General (DG) Outperforms Broader Market: What You Need to Know
Dollar General (DG) closed at $135.65 in the latest trading session, marking a +0.27% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.24%.
The the stock of discount retailer has risen by 0.92% in the past month, lagging the Retail-Wholesale sector's gain of 8.04% and the S&P 500's gain of 6.45%.
The investment community will be closely monitoring the performance of Dollar General in its forthcoming earnings report. The company is predicted to post an EPS of $1.73, indicating a 41.55% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.77 billion, down 4.28% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dollar General. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% higher. At present, Dollar General boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Dollar General is currently being traded at a Forward P/E ratio of 18.19. For comparison, its industry has an average Forward P/E of 21.86, which means Dollar General is trading at a discount to the group.
We can additionally observe that DG currently boasts a PEG ratio of 2.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.11.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dollar General Corporation (DG) : Free Stock Analysis Report
