Dollar General (DG) Rises Yet Lags Behind Market: Some Facts Worth Knowing
In the latest market close, Dollar General (DG) reached $136.16, with a +0.1% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.07% for the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw an increase of 1.74%.
The the stock of discount retailer has risen by 0.94% in the past month, lagging the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 2.93%.
Investors will be eagerly watching for the performance of Dollar General in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.73, marking a 41.55% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.77 billion, indicating a 4.28% decrease compared to the same quarter of the previous year.
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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.16% higher. Currently, Dollar General is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 18.29. This denotes a discount relative to the industry's average Forward P/E of 21.46.
Also, we should mention that DG has a PEG ratio of 2.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. DG's industry had an average PEG ratio of 2.1 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 90, putting it in the top 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dollar General Corporation (DG) : Free Stock Analysis Report
