|Bid||95.00 x 1100|
|Ask||0.00 x 900|
|Day's Range||111.35 - 112.77|
|52 Week Range||85.54 - 118.45|
|Beta (3Y Monthly)||0.83|
|PE Ratio (TTM)||16.57|
|Earnings Date||Mar 13, 2019 - Mar 18, 2019|
|Forward Dividend & Yield||1.16 (1.00%)|
|1y Target Est||118.12|
After tax cuts, rising incomes and buoyant stock markets set off a consumer boom in 2018, signs are emerging that the main engine of U.S. economic growth could sputter, and a record-long government shutdown further muddies the waters. Federal Reserve officials and many economists have long counted on continued robust consumer spending to keep the economy chugging along, despite headwinds from recent financial markets turbulence, trade conflicts and weakening global growth. Now they fear the consumer boom could be on the cusp of a reversal.
These factors have certainly aided Costco (COST) to rapidly adapt to the evolving retail ecosystem and sustaining impressive comparable sales run during the holiday season.
# Dollar General Corp ### NYSE:DG View full report here! ## Summary * Bearish sentiment is low * Economic output in this company's sector is expanding ## Bearish sentiment Short interest | Positive Short interest is low for DG with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ## Money flow ETF/Index ownership | Neutral ETF activity is neutral. The net inflows of $12.90 billion over the last one-month into ETFs that hold DG are not among the highest of the last year and have been slowing. ## Economic sentiment PMI by IHS Markit | Positive According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. ## Credit worthiness Credit default swap CDS data is not available for this security. Please send all inquiries related to the report to firstname.lastname@example.org. Charts and report PDFs will only be available for 30 days after publishing. This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Dollar Tree Inc. (DLTR) is a leading operator of discount variety stores, primarily in the United States. While I haven't seen comparable numbers from Dollar Tree, Dollar General Corp (DG) has disclosed its initial outlays to add a new store is roughly $250,000. Using that as a guide, it's clear that Dollar Tree is generating attractive returns on investment by adding new boxes (which explains why this has been its primary use of cash flow for years).
How Dollar General Is Positioned in 2019 (Continued from Prior Part) ## Current valuation multiple As of January 8, Dollar General (DG) was trading at 12-month forward PE (price-to-earnings) multiple of 17.2x while peer Dollar Tree’s (DLTR) valuation multiple was 17.0x. These two companies are trading at premium valuations compared to the S&P 500 Index’s forward PE of about 14.9x. Dollar General’s valuation multiple has risen 2.0% since the announcement of its fiscal 2018 third-quarter results in early December. Dollar General reported positive results for the third quarter but lowered its full-year fiscal 2018 guidance to reflect the impact of hurricanes and rising transportation costs. ## Growth prospects Analysts expect Dollar General’s adjusted EPS to rise 31.5% to $6.01 in fiscal 2018, which ends on February 1, 2019. Higher sales and a lower share count resulting from share repurchases are expected to benefit the company’s bottom-line growth. Currently, analysts expect Dollar General’s fiscal 2019 adjusted EPS to rise 11% to $6.67. Analysts expect Dollar Tree’ adjusted EPS are expected to rise 12.1% to $5.45 in fiscal 2018 and grow 6.8% in fiscal 2019. Rising costs and growth investments are expected to pressure Dollar General’s profitability. Dollar General is trying to mitigate the effect of higher costs by streamlining its operations and exercising cost discipline. The company is also pursuing opportunities like optimizing shipment loads and expanding its private fleet to bring down the impact of rising distribution and transportation costs. Dollar General’s extensive store presence and ability to attract value-conscious customers is likely to help it deliver same-store sales growth for the 29th consecutive year in fiscal 2018. Browse this series on Market Realist: * Part 1 - How Dollar General Is Positioned in 2019 * Part 2 - Dollar General’s Sales Growth: What Wall Street Expects * Part 3 - What Could Affect Dollar General’s Earnings Growth
How Dollar General Is Positioned in 2019 (Continued from Prior Part) ## Recent results Dollar General’s (DG) adjusted EPS of $1.31 in the third quarter of fiscal 2018 grew 33.7% on a year-over-year basis. The company beat analysts’ expectation of $1.26. The significant earnings growth in the quarter resulted from strong sales growth, lower taxes, and the favorable impact on EPS of share repurchases. The company’s reported EPS of $1.26 was adversely affected by hurricanes and other disaster-related expenses of $0.05. Despite better-than-expected sales, Dollar General’s gross as well as operating margin declined in the fiscal third quarter. The company’s gross margin contracted 39 basis points to 29.5% due to the impact of a higher LIFO provision, an unfavorable sales mix arising from a higher proportion of consumables category, increased markdowns, and higher transportation costs. Dollar General’s operating margin declined about 20 basis points to about 6.9% in fiscal 2018’s third quarter due to higher depreciation expenses and disaster-related losses. ## Earnings expectations Dollar General expects its fiscal fourth quarter’s reported EPS to take a hit from hurricanes and other disaster-related expenses of $0.04. Excluding one-time items, analysts expect the company’s adjusted EPS to grow 26.4% to $1.87 in the fourth quarter. Following its third-quarter results, Dollar General lowered its fiscal 2018 reported EPS guidance to the range of $5.85–$6.05 from the previously issued outlook range of $5.95–$6.15. The lowered guidance reflected the impact of hurricane-related expenses of $0.09 and higher transportation costs. A lower share count due to the repurchase of the company’s shares is expected to favorably affect the fiscal 2018 EPS. Dollar General aims to make share repurchases of at least $850 million in fiscal 2018. We’ll discuss analysts’ expectations for Dollar General’s fiscal 2018 and fiscal 2019 earnings in the next part of this series. Continue to Next Part Browse this series on Market Realist: * Part 1 - How Dollar General Is Positioned in 2019 * Part 2 - Dollar General’s Sales Growth: What Wall Street Expects * Part 4 - Is Dollar General Trading at an Attractive Valuation?
Dollar General (DG) expects its sales to rise about 9.0% in fiscal 2018, which ends on February 1, 2019. Analysts expect Dollar General’s sales to grow about 9.0% to $25.6 billion in fiscal 2018. Dollar General is trying to boost its sales by expanding its store network and remodeling its existing stores.
How Dollar General Is Positioned in 2019 ## Recent analyst activity On January 9, RBC raised its price target for Dollar General (DG) stock to $126 from $122. RBC also raised its price target for Dollar General’s key rival, Dollar Tree (DLTR), to $109 from $98. On January 7, KeyBanc upgraded Dollar General (DG) stock from “sector weight” to “overweight” and assigned a price target of $125. On January 4, UBS raised its price target for Dollar General to $125 from $120. In December, Dollar General reported better-than-expected results for the third quarter of fiscal 2018, which ended on November 2. However, the company disappointed investors by lowering its full-year fiscal 2018 earnings outlook to reflect the impact of expenses related to hurricanes Florence and Michael and increased transportation costs. ## Price target revisions Many analysts lowered their price targets for Dollar General following the announcement of the revised outlook. On December 5, Raymond James, RBC, and Morgan Stanley cut their price estimate for Dollar General. Further, on December 18, J.P. Morgan lowered its price target to $117 from $123. In contrast, Morgan Stanley increased its price target to $119 from $115 on December 13. In 2018, Dollar General stock grew 16.2%, outperforming rival Dollar Tree, which declined 15.8% and the broader S&P 500 which fell 6.2%. Dollar Tree has now attracted the attention of Starboard Value, which believes that the company should consider strategic alternatives for its Family Dollar banner, including a sale. As of January 8, Dollar General was rated a “buy” by 64% or 18 out of 28 stocks. The stock was rated a “hold” by nine analysts while one analyst had a “sell” recommendation. The 12-month price target for Dollar General stock is $116.96, which implies an upside potential of about 3%, compared to the closing price on January 8. Next in this series, we’ll discuss the expectations for Dollar General’s sales. Continue to Next Part Browse this series on Market Realist: * Part 2 - Dollar General’s Sales Growth: What Wall Street Expects * Part 3 - What Could Affect Dollar General’s Earnings Growth * Part 4 - Is Dollar General Trading at an Attractive Valuation?
A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. Dollar General Corporation (NYSE:DG) has paid a Read More...
Four years ago, Dollar Tree beat Dollar General in the battle for Family Dollar, a chain of 8,200 stores that caters to low-income shoppers. Now the coveted asset is dragging down Dollar Tree’s sales and stock. Dollar Tree bought the chain in the hopes of bulking up to better compete with Dollar General, Walmart, and Target.
Activist hedge fund Starboard Value LP on Monday called on Dollar Tree Inc to sell its underperforming Family Dollar business and proposed replacing a majority of the board after revealing a stake in the U.S. discount retailer. Starboard is seeking to capitalize on criticism from some investors and analysts that Dollar Tree should consider raising prices for some products to more than $1, especially in light of the United States' trade row with China that threatens to erode its profitability. Starboard said on Monday it had built a 1.7 percent stake in Dollar Tree, making it the ninth biggest shareholder.
Activist investor Starboard Value LP just acquired a stake in Dollar Tree Inc. and is pushing the retailer to sell its Family Dollar business and make changes to its pricing model, the Wall Street Journal reported. The New York hedge fund has a 1.7% stake worth about $370 million in Dollar Tree and is seeking to control the company's 12-person board, the Journal said, citing sources.
Dollar Tree Caught Starboard Value's Attention ## Starboard Value’s stake in Dollar Tree Activist investor Starboard Value has purchased a 1.7% stake in Dollar Tree (DLTR). The Wall Street Journal reported the news on January 6. According to the Starboard Value letter, the activist investor wants Dollar Tree to explore strategic alternatives (including a possible sale) for the Family Dollar business, which has been a drag on its performance. Starboard Value wants to control most of Dollar Tree’s board of directors. Starboard Value has nominated seven directors for election to Dollar Tree’s board at the 2019 annual shareholders meeting. Starboard Value thinks that Dollar Tree should modify its business model and consider testing a multi-price point strategy at Dollar Tree stores. The activist investor thinks that the company should sell merchandise for more than a dollar to accommodate rising costs. ## Family Dollar acquisition Since acquiring the Family Dollar business in 2015, Dollar Tree has been working to streamline Family Dollar’s operations. However, Family Dollar’s performance continues to lag Dollar Tree. In the third quarter of fiscal 2018, which ended on November 3, Dollar Tree’s overall same-store sales grew 1.0%. Dollar Tree’s 2.3% rise in same-store sales was offset by a 0.4% decline in Family Dollar’s same-store sales. Dollar Tree lowered its sales and earnings guidance following its third-quarter results. In November, Dollar Tree announced that it would accelerate its store optimization program. The company plans to renovate at least 1,000 Family Dollar stores in fiscal 2019. Dollar Tree plans to open 350 new stores under the Dollar Tree banner and 200 new stores under the Family Dollar brand in the next fiscal year. The company intends to re-banner 200 Family Dollar stores to the Dollar Tree brand in fiscal 2019. Since the acquisition of Family Dollar, Dollar Tree has renovated 865 Family Dollar stores, re-bannered 354 Family Dollar brand stores to the Dollar Tree brand, and closed 195 Family Dollar stores. In 2018, Dollar Tree stock fell 15.8%, while Dollar General (DG) rose 16.2%. The S&P 500 fell 6.2% in 2018. Aside from the issues with Family Dollar, Dollar Tree’s performance was weak due to higher costs including increased freight costs and wages. The pressure from Starboard Value might help Dollar Tree deliver better results.
Dollar General (DG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
In the trailing 11 quarters, Five Below (FIVE) has bested EPS estimates ten times and missed estimates in the remaining quarter. Five Below’s adjusted EPS topped estimates by a wide margin in each of the first three quarters of 2018. Its adjusted EPS also rose YoY (year-over-year) in all three quarters.
In the latest trading session, Dollar General (DG) closed at $108.08, marking a +0.94% move from the previous day.
In fiscal 2018, Ollie’s Bargain Outlet Holdings’ (OLLI) adjusted EPS beat analysts’ estimates in all three quarters. Top-line growth, lower interest expenses, and a lower tax burden supported the bottom-line growth despite increases in costs. In the trailing 11 quarters, Ollie’s has beaten EPS estimates in all of the quarters. For the fourth quarter, analysts’ consensus estimate stands at $0.65, which reflects 27.9% growth year-over-year.
In the trailing 11 quarters, Five Below (FIVE) has beaten top line estimates nine times and missed estimates twice. Five Below has topped analysts’ projections in all three quarters of 2018 so far. Strong comps growth and new store openings also aided the company’s top line.
Most Wall Street analysts have retained their “buy” ratings for Ollie’s Bargain Outlet Holdings (OLLI) stock, given the strong financial performance in 2018. An increasing store base, expanding product assortment, and compelling deals are expected to drive the top-line growth for Ollie’s Bargain Outlet. For fiscal 2018, Ollie’s has forecast sales at $1.226 billion–$1.231 billion versus the $1.222 billion–$1.227 billion range guided earlier
Most analysts have retained their “buy” ratings on Five Below (FIVE) stock given the company’s strong financial performance in 2018. About 72% of the 18 analysts covering FIVE have given the stock “buys,” while 28% have given it “holds.”
From former President Jimmy Carter shopping at Dollar General to the $1.5 billion lottery jackpot, the second-largest in history, there was a lot to say about how people earned, saved, spent, approached, invested, agonized over and hoped to make money in 2018. You don't need a perfect credit score to get the best deals, Greg McBride, chief analyst at Bankrate , tells CNBC Make It. Apple shares hit a historic $1 trillion market cap value in August 2018, making the tech giant the first public U.S. company to ever reach the milestone.