Dollar General (DG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Dollar General (DG) closed at $198.60, marking a -0.72% move from the previous day. This change lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.5%.
Coming into today, shares of the discount retailer had lost 6.19% in the past month. In that same time, the Retail-Wholesale sector gained 4.94%, while the S&P 500 gained 3.18%.
Wall Street will be looking for positivity from DG as it approaches its next earnings report date. The company is expected to report EPS of $2.69, up 28.1% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $8.23 billion, up 14.93% from the year-ago period.
It is also important to note the recent changes to analyst estimates for DG. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. DG is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, DG currently has a Forward P/E ratio of 20.06. This represents a discount compared to its industry's average Forward P/E of 24.09.
Meanwhile, DG's PEG ratio is currently 1.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.54 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% 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.
To follow DG in the coming trading sessions, be sure to utilize Zacks.com.
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
To read this article on Zacks.com click here.
