DG - Dollar General Corporation

NYSE - NYSE Delayed Price. Currency in USD
+1.58 (+1.15%)
At close: 4:01PM EDT
Stock chart is not supported by your current browser
Previous Close137.21
Bid0.00 x 800
Ask139.00 x 900
Day's Range137.93 - 140.37
52 Week Range98.08 - 145.06
Avg. Volume1,725,643
Market Cap35.853B
Beta (3Y Monthly)0.70
PE Ratio (TTM)22.78
EPS (TTM)6.09
Earnings DateAug 29, 2019
Forward Dividend & Yield1.28 (0.93%)
Ex-Dividend Date2019-07-08
1y Target Est141.65
Trade prices are not sourced from all markets
  • Market Shrugs off Pessimistic Reading of Fed Minutes

    Market Shrugs off Pessimistic Reading of Fed Minutes

    Although the retail sector is lagging, key stocks are thriving, while fast food stocks are posting slow and steady gains.

  • 3 Discount Store Stocks to Buy as Retail Sector Sees Boost

    3 Discount Store Stocks to Buy as Retail Sector Sees Boost

    Retailers that have adapted well to the changing consumer landscape have done exceptional this year.

  • 10 Stocks to Own Through a Global Recession

    10 Stocks to Own Through a Global Recession

    A recession isn't guaranteed. With each passing day, however, an economic downturn becomes increasingly likely. At the very least, we should expect some broader correction in the markets due to timing issues. After all, we're on a record-breaking bull run. That alone should help adjust how we approach which stocks to buy.Moreover, evidence exists all around us that we'll incur a recession. Obviously, the biggest factor here is the U.S.-China trade war. President Donald Trump has aggressively prosecuted his economic rivalry with China, but his efforts have yielded almost nothing fruitful. And while he has succeeded in damaging the world's second-biggest economy, domestic stability is starting to fracture.This might lead to both sides inking a deal, thereby rendering moot the demand for recession-proof stocks to buy. However, the trade war may have accelerated certain vulnerabilities past the tipping point. More significantly, the trade war has impacted other nations including Germany. Due to uncertainties over the U.K. leaving the European Union, export-dependent Germany risks falling into a recession.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Undervalued Stocks With Breakout Potential And if that happens, it will send a ripple effect throughout the world. Therefore, it doesn't hurt to be prepared. Here are 10 recession-proof stocks to buy: Waste Management (WM)Source: rblfmr / Shutterstock.com This is perhaps the ultimate irony. In an article about recession-proof stocks to buy, I'm here talking about Waste Management (NYSE:WM). Although seemingly an illogical idea, it's actually not. You see, Americans produce a massive amount of waste, or roughly 230 million tons of it every year. Right there you have a legitimate bullish argument for WM stock.Due to the almost inhuman rate at which we throw junk away, landfills throughout the country have been nearing capacity. To help remedy this situation, we've been exporting our recyclables to China. We've mixed our trash with our recyclables, but Chinese workers have sifted through the junk to find recyclable items. However, trade war tensions destroyed this relationship, which might be a benefit to WM stock.Why? With China and other countries rejecting our trash, land earmarked for waste will jump to a premium. And I don't think it's any surprise that WM stock is one of the strongest-performing recession-proof stocks to buy. Procter & Gamble (PG)Source: Jonathan Weiss / Shutterstock.com I couldn't think of a more boring name than Procter & Gamble (NYSE:PG). Known everywhere for their household goods, the company specializes in such compelling products like diapers, detergent and over-the-counter anti-diarrhea medicine. But if you want to protect yourself with recession-proof stocks to buy, boring is usually best.The markets fully agree with this basic assessment. On a year-to-date basis, PG stock has gained over 33%. Moreover, shares have charted a very clean and consistently rising trend channel. This has been accentuated only by brief moments of volatility. Plus, shares have recovered well from the 800-point drop in the Dow Jones Industrial Average in mid-August. * 10 Marijuana Stocks to Ride High on the Farm Bill But will PG stock continue to trek higher? If we head toward a recession, this is one of the few names that will give you confidence. That's because practically everything that Procter & Gamble sells is a necessity, whether we have a downturn or not. Home Depot (HD)Source: Ken Wolter / Shutterstock.com In discussions about recession-proof stocks to buy, Home Depot (NYSE:HD) comes up often. I believe that's the case because HD stock has both bullish and bearish catalysts.When things are going well, Home Depot benefits from more construction activity. During downturns, its revenue streams are somewhat insulated because repairs and renovations don't wait for recessions. And since other sectors are doing poorly in bear markets, HD stock wins over defensive-minded investors.Unsurprisingly, Home Depot shares have performed well this year, gaining about 30%. However, HD stock has offered up a turbulent ride toward those returns, worrying some onlookers.That said, the company received some good news. Due to the repercussions of the U.S.-China trade war, Home Depot's suppliers are shifting manufacturing from China to other countries like Taiwan or Vietnam. That translates to a significant mitigation of the trade war impact, bolstering the argument for HD stock. Dollar General (DG)Source: Jonathan Weiss / Shutterstock.com I've said this before, but the best recession-proof stocks to buy have the most straightforward and logical arguments. Under this context, you should definitely consider adding Dollar General (NYSE:DG) to your portfolio.Simply put, DG stock is a direct play on consumer behaviors during an economic downturn. What do most people do when job opportunities run dry? They buckle in for a long financial winter. For many folks, that translates into doing whatever is necessary to save money, including shopping at dollar-only stores.Another factor benefiting DG stock is that such stores offer comprehensively great deals. For instance, I once picked up a can opener for a buck. To this day, this cheap can opener has never failed me, whereas a $12 variant from a big-box retailer might not last a year. * 10 Stocks to Buy on the Trade War Dip Overall, I think this is the reason why DG stock is up nearly 30% YTD. During this period of extended saber-rattling and worrisome economic metrics, Dollar General has become incredibly relevant. Kroger (KR)Source: Jonathan Weiss / Shutterstock.com Over the years, I haven't shown much love toward grocers like Kroger (NYSE:KR). A big reason why is competition. Not only do you have disruptive organizations like Amazon (NASDAQ:AMZN) encroaching into the arena, big-box retailers like Walmart (NYSE:WMT) and Target (NYSE:TGT) offer one-stop-shop solutions, which include groceries. Thus, KR stock has a steep uphill climb to navigate.Furthermore, I have been right on my hesitancy toward KR stock. However, with Wall Street now shifting their focus to recession-proof stocks to buy, Kroger suddenly looks much more interesting. Of course, some serious risks abound. For instance, shares are down 15% YTD. This is also a company within an industry that depends on high volume to compensate for the low margins.However, KR stock has an advantage during downturns. As a strictly grocery specialist, Kroger can offer lower prices due to bulk shipments. Furthermore, Amazon's disruptive acquisition, Whole Foods Market, probably won't do so well in a recession. Thus, don't overlook KR in your search for recession-proof stocks to buy. Ross Stores (ROST)Source: Andriy Blokhin / Shutterstock.com If you're like me, you probably don't care too much about fashion trends: you just buy whatever looks best on you. And for that reason, I love off-season discount retailers like Ross Stores (NASDAQ:ROST). I get to buy brand-name shoes and apparel, simply because they weren't popular enough or they're a few months old. Millions feel the same way, which supports the case for ROST stock during bull markets.But even in bear markets, ROST stock is compelling. That's because recessions don't happen like a light switch. A decline in GDP doesn't immediately evoke images of a dystopian nightmare. Instead, people do normal things, but with a more cost-conscious mindset. Logically, this environment benefits ROST stock. * 10 Stocks Under $5 to Buy for Fall The markets have agreed with this assessment. Currently, ROST stock is up over 29% YTD. Moreover, shares have so far handled the August volatility well, moving up slightly for the month. Therefore, this is another name to keep on your list of recession-proof stocks to buy. Kirkland Lake Gold (KL)Recession-proof stocks to buy don't always have to be so boring and predictable, as Kirkland Lake Gold (NYSE:KL) proves. As you might deduce from the name, KL stock is a precious metals mining investment. And I really love gold and silver in this particular market setup.Primarily, I say this because the Federal Reserve is essentially greenlighting gold and silver prices to jump to all-time records. How? In late July, the Fed announced that they will cut benchmark interest rates, a first since 2008. Later, the yield curve inverted, which basically forces the central bank to cut rates further to flatten the curve.Generally speaking, these actions are inflationary for the U.S. dollar. And that is good for gold and silver prices, which in turn benefits KL stock.Another factor bolstering shares is the political stability of their projects. Largely doing business in Canada and Australia, these two nations have stable infrastructures and are allied with the U.S. With precious metals moving higher, KL stock just seems like a no-brainer. AMC Entertainment (AMC)Source: Sundry Photography / Shutterstock.com Unfortunately, cineplex operator AMC Entertainment (NYSE:AMC) hasn't panned out as I had hoped. Of course, the critics would blast me for even thinking about AMC stock. In a world where streaming giant Netflix (NASDAQ:NFLX) dominates the content-entertainment ecosystem, AMC seems anachronistic, like a time-traveling DeLorean.A major reason why AMC stock hasn't performed to speculators' expectations is this year's movie offerings. In my opinion, it's a very slow season for Hollywood. Furthermore, it won't get better until Disney (NYSE:DIS) releases its highly anticipated "Star Wars" film.But as a speculative play among recession-proof stocks to buy, I like my chances with AMC stock. No matter what, humans are social creatures. Therefore, no amount of streaming will change our hardwired psychology to interact with others. * The 10 Best Cheap Stocks to Buy Right Now Plus, AMC represents (relatively) cheap entertainment. Even with buying outrageously priced popcorn and drinks, you're still better off at the box office than at a typical NFL game. And during a downturn, that pricing advantage is a huge tailwind. RCI Hospitality (RICK)If you're looking for viable recession-proof stocks to buy, RCI Hospitality (NASDAQ:RICK) isn't an equity that you would put on your portfolio. Instead, you would recommend RICK stock to your "friend," who utilizes the company's services frequently. In fact, your "friend" probably has a problem receiving too much hospitality.Joking aside, RICK stock is one of the most interesting and controversial recession-proof stocks to buy. In the aftermath of the Great Recession, several gentlemen's clubs reported that business was booming. Psychologically and practically, I understand why. Men need an outlet after suffering humiliation at work. On the other hand, some women are willing to provide acrobatic hospitality when opportunities run dry.Of course, this is a really shady way of profiting from a possible downturn. However, if you're truly agnostic about your portfolio, RICK stock offers a pathway to survive and thrive. Anheuser Busch Inbev (BUD)Source: legacy1995 / Shutterstock.com I must admit that I don't feel too terrible about suggesting RICK as one of the better recession-proof stocks to buy. Ultimately, I see this activity as consenting adults doing adult things.However, I feel almost shameful about discussing Anheuser Busch Inbev (NYSE:BUD). It's not because of their underlying product. Few things are as American as having a cold one at a backyard barbeque. Instead, it's the reason behind it: BUD stock may outperform your expectations during a recession.Why is that? According to health-related studies, an economic recession correlates with increased imbibing. That's not a surprise. After all, who hasn't knocked back a few to take the edge off a stressful situation?But the question is, should you profit from this narrative? If you feel that this is also a case of adults being adults, check out BUD stock. Bud Light is the top-selling beer in America. And due to its price point, it's very attractive during a recessionary period.As of this writing, Josh Enomoto is long gold and silver bullion, and AMC stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 10 Stocks to Own Through a Global Recession appeared first on InvestorPlace.

  • 6 China Stocks to Buy on the Dip

    6 China Stocks to Buy on the Dip

    I'm a long-term bull on China stocks. Even as a long-term bull, however, I recognize that beaten up China stocks won't rebound until China's economy stops slowing.Fortunately, over the past few weeks, several signs and trends have emerged which imply that China's economy is starting to curb its slowdown. Those signs and trends are as follows: * OECD Leading Indicator Trending Higher: The OECD's Composite Leading Indicator (or CLI) for China, which has been compressing since late 2018, has improved every month from February through June 2019. * OECD Consumer Confidence Trend Has Bounced Back: Similar to the OECD's CLI, the OECD's Consumer Confidence Index (or CCI) for China compressed throughout 2018, but has rebounded in 2019. * Retail Sales Trends Improved in 2019: The retail sales growth trend in China has improved from 8.1% to 8.2% in the last two months of 2018, to 8.3% through the first seven months of 2019, including an average gain of 8.7% over the past three months. * Manufacturing Activity Shows Signs of Bottoming: China's Purchasing Manager's Index (PMI) reading compressed rapidly throughout 2018, but has shown signs of stabilizing between 49 and 50 in 2019. * Trade Data Stabilizing: Amid a trade war with its biggest trading partner, China's trade data -- both imports and exports -- has been sluggish over the past several months. But, June trade data was much better than expected on both the imports and exports side.All these signs and trends may just be a series of head-fakes. But, I don't think so.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Instead, the volume of data here strongly suggests that China's economy is finally starting to stabilize, and that means it's time to start buying the dip in high-quality China stocks, most of which still have compelling long-term upside. China Stocks to Buy on the Dip: Alibaba (BABA)Source: Nopparat Khokthong / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on Alibaba (NYSE:BABA) is very simple. China has more than 1.4 billion people. Less than 60% of those people are connected to the internet, versus a 90% internet penetration rate in North America. Over the next decade-plus, as China's consumer economy urbanizes and digitizes, China's internet penetration rate will rise towards 90%, implying hundreds of millions of new shoppers in China's e-retail ecosystem.Most of those shoppers will do the bulk of their e-retail shopping on Alibaba. Thus, over the next decade-plus, Alibaba's revenues and profits will stay on a big growth trajectory. That big profit growth will push BABA stock higher in the long run.Near-Term Bull Thesis: The near-term bull thesis on BABA stock has everything to do with margins. Specifically, Alibaba has never had a problem with revenue growth. Thanks to secular e-commerce tailwinds, Alibaba has been a 20%-plus revenue growth company for a long time. * 10 Undervalued Stocks With Breakout Potential Alibaba's margins have been under tremendous pressure over the past few years, thanks to big growth investments and competitive pressures. Over the past few quarters margin trends have improved significantly. If these margin improvements persist, BABA stock could continue to move materially higher in the near-term. JD.Com (JD)Source: Sundry Photography / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on JD.com (NASDAQ:JD) mirrors the long term bull thesis on Alibaba. A ton of consumers in China, a significant portion of whom still aren't connected to the internet, imply huge growth potential over the next several years for China's e-commerce marketplace and its biggest players -- Alibaba and JD.On top of that, JD is also looking to expand internationally, and that international expansion provides a huge growth opportunity for the company in the long run. JD projects as a big growth company for a lot longer, and all that growth should propel JD stock higher in the long run.Near-Term Bull Thesis: Also much like Alibaba, the near-term bull thesis on JD stock has everything to do with margins. JD employs a very similar model to Amazon (NASDAQ:AMZN). Consequently, the company has historically run at anemic margins. But, margins in 2019 have improved meaningfully as the company has reaped the rewards of 2018 efficiency-related investments.These investments should continue to yield margin-expanding rewards for the next several quarters. As margins continue to track higher, so should JD stock. Vipshop (VIPS)Source: madamF / Shutterstock.com Long-Term Bull Thesis: At the risk of sounding like a broken record, the long term bull thesis on online discount retailer Vipshop (NYSE:VIPS) centers around the idea that China's e-commerce market is in the first few innings of a massive growth narrative which will ultimately power sustained growth at Vipshop.Specific to Vipshop, you have a company which dominates the online discount niche. Looking over at the U.S. retail landscape, the discount niche is a very valuable one (see Dollar General (NYSE:DG), TJX Companies (NYSE:TJX), or Five Below (NASDAQ:FIVE)). As such, U.S. comps imply that Vipshop has a bright future as the go-to online discount retailer in China.Near-Term Bull Thesis: As is the case with every other China e-commerce stock, the near-term bull thesis on VIPS stock has to do with the fact that -- for the first time in several years -- Vipshop's margins are meaningfully improving. This big improvement was on full display last quarter, when gross and operating margins both increased nearly 300 basis points year-over-year. * The 10 Best Cheap Stocks to Buy Right Now The implication is that this margin improvement will persist, driven by continued cost-cutting and logistics improvements. As margins continue to trend higher over the next few quarters, so will VIPS stock. Ctrip.com (CTRP)Source: rafapress / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on online travel service provider Ctrip.com (NASDAQ:CTRP) revolves around one critical statistic: passenger flight volume per capita. In 2015, America's passenger flight volume per capita was 2.5. In most developed economies, it was either near or above 1. China's passenger flight volume per capita in 2015 was around 0.3.This discrepancy implies huge room for China air travel volume growth over the next several years. China is projected to be the fastest-growing air travel market over the next several years. It's also projected to become the biggest air travel market by 2024. As China's air travel market rapidly expands over the next several years, China's go-to air travel booking site, Ctrip.com, will benefit from big traffic, revenue, and profit growth. All that growth will ultimately power CTRP stock higher in the long run.Near-Term Bull Thesis: The near-term bull thesis on CTRP stock ties back into this idea that China's economy is stabilizing. Specifically, air travel is a very economically sensitive industry. That is, when times are good and consumers have extra cash to spend, they often spend it on travel. The converse is true, too.Consequently, as China's economy stabilizes and starts to improve over the next several quarters, China's air travel trends should start to similarly improve. As they do, Ctrip's numbers will meaningfully improve, which should spark a nice recovery rally in CTRP stock. Bilbili (BILI)Long-Term Bull Thesis: From where I sit, the long-term bull thesis on Bilibili (NASDAQ:BILI) looks a lot like the long-term bull thesis on Pinterest (NYSE:PINS). That's not to say these two platforms are the same. They aren't. Pinterest is a visual discovery platform. Bilibili is an anime gaming and comic-focused video platform.These two companies do have similar characteristics: huge user bases, unique value props, and nascent but growing ad businesses. The implication for Bilibili and Pinterest is that -- as these companies build out their revenue models over the next several years -- their huge user bases will translate into huge revenues and profits, and ultimately huge market caps.This dynamic is already playing out at Pinterest. It will play out at Bilibili in a similar fashion over the next several years.Near-Term Bull Thesis: Near-term, BILI stock looks good because it increasingly appears that China's economic stabilization is having a positive impact on China's digital ad market. Specifically, Weibo (NASDAQ:WB) and Baidu (NASDAQ:BIDU) are two Chinese digital ad companies which have struggled over the past few quarters. But, last quarter, each company reported better-than-expected numbers. The implication? China's digital ad market is finally improving. * 15 Growth Stocks to Buy for the Long Haul That's great news for Bilibili. Unlike Weibo and Baidu, Bilibili has maintained a big growth rate over the past few quarters as the ad market has slowed. Now that the market is ramping back up, Bilibili's numbers next quarter should be extra good. If so, that will spark a healthy rebound rally in beaten up BILI stock. Weibo (WB)Source: testing / Shutterstock.com Long-Term Bull Thesis: The long-term bull thesis on Chinese micro-blogging site Weibo revolves around the idea that this company is, for all intents and purposes, the Twitter (NYSE:TWTR) of China. There are just three big differences.One; Weibo has way more daily active users (211 million, versus 139 million at Twitter). Two; Weibo is more profitable (38% year-to-date EBITDA margins, versus 35% at Twitter). Three; Weibo makes way less revenue per user (Q2 ARPU of about $2, versus around $6 at Twitter).The first two differences are positives for Weibo. The third is a negative. Presumably, Weibo's unit revenue trends will improve as their ad targeting capabilities improve and as China's ad market matures. As this discrepancy narrows, so will the market cap difference between Weibo ($10 billion) and Twitter ($30 billion) -- implying huge growth potential for WB stock in the long run.Near-Term Bull Thesis: The near-term bull thesis on WB stock has to do with two things. First, revenue trends are turning around. Over the past several quarters, revenue growth has been trending down every quarter. Next quarter, though, management is guiding for revenue growth to improve sequentially.Second, margin trends are improving. Over the past several quarters, margins have been under pressure. Last quarter, that pressure eased in a big way.So long as revenue and margin trends improve from here, then beaten-up WB stock should bounce back in the near term.As of this writing, Luke Lango was long BABA, JD, AMZN, TJX, FIVE, CTRP, and BILI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 6 China Stocks to Buy on the Dip appeared first on InvestorPlace.

  • Costco (COST) Stellar Comps Aiding Stock's Run on Bourses

    Costco (COST) Stellar Comps Aiding Stock's Run on Bourses

    Costco (COST) looks quite disciplined in its approach of tackling prevailing headwinds in the retail landscape. Stellar comps trend is shaping stock's bullish run on the bourses.

  • Dollar General (DG) Outpaces Stock Market Gains: What You Should Know

    Dollar General (DG) Outpaces Stock Market Gains: What You Should Know

    Dollar General (DG) closed at $138.10 in the latest trading session, marking a +1.61% move from the prior day.

  • Barrons.com

    5 Retail Stocks to Own in a Recession, According to an Analyst

    The government reported that U.S. retail sales rose in July, a sign of strength in the sector. But with other recession predictors flashing red, it’s worth considering what investors should do with retail stocks in the event of a recession.

  • How Children's Place (PLCE) Looks Just Ahead of Q2 Earnings

    How Children's Place (PLCE) Looks Just Ahead of Q2 Earnings

    Expansion plans and digital efforts bode well for Children's Place (PLCE). However, the Gymboree buyout is likely to affect Q2 results.

  • Business Wire

    Dollar General Announces Webcast of Its Second Quarter 2019 Earnings Conference Call

    Dollar General Corporation today announced that it plans to release its financial results for the fiscal 2019 second quarter on August 29, 2019.

  • Dollar General (DG) Gains But Lags Market: What You Should Know

    Dollar General (DG) Gains But Lags Market: What You Should Know

    Dollar General (DG) closed the most recent trading day at $135.38, moving +0.34% from the previous trading session.

  • The Deal at Dollar General May Not Last

    The Deal at Dollar General May Not Last

    DG is in an uptrend, but the Point and Figure chart shows some risk ahead, so a close below the recent low around $131 would be a signal to book profits.

  • A Look At The Fair Value Of Dollar General Corporation (NYSE:DG)
    Simply Wall St.

    A Look At The Fair Value Of Dollar General Corporation (NYSE:DG)

    In this article we are going to estimate the intrinsic value of Dollar General Corporation (NYSE:DG) by projecting its...

  • FedEx Ends Ground-Delivery Deal With Amazon

    FedEx Ends Ground-Delivery Deal With Amazon

    (Bloomberg) -- FedEx Corp. is snipping another tie with Amazon.com Inc. as the e-commerce giant emerges as a competitor by building its own shipping network.The ground-delivery contract with Amazon won’t be renewed when it expires at the end of this month, FedEx said in a statement. The decision quickens the company’s retreat from the largest online retailer just two months after FedEx said its Express unit wouldn’t extend an agreement to fly Amazon’s packages in the U.S.“This change is consistent with our strategy to focus on the broader e-commerce market,” FedEx said in the statement. Recent moves to bolster service “have us positioned extraordinarily well” to handle demand, it said. The courier will still have a contract with Amazon for international deliveries.FedEx is reducing its dependence on Amazon as the online retailer builds out a logistics network with hundreds of fulfillment centers and adds next-day air capacity with leased jets. Amazon is also starting a home-delivery service modeled after the contractor-based ground unit at FedEx, which flagged the competitive risk in its latest annual report to U.S. regulators.“We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships,” Amazon said in an email Wednesday. “FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers.”FedEx dropped 1.6% to $158.57 at 1:04 p.m. in New York. Amazon fell 1.1% to $1,767.39.The pullback is more negative for FedEx than for Amazon, said Satish Jindel, founder of SJ Consulting Group, which provides data and advice to logistics companies.Embracing WalmartAmazon can still rely on United Parcel Service Inc., the U.S. Postal Service, regional carriers and its own growing network to deliver packages, he said. FedEx will seek to make up for the lost volume with traditional retailers such as Walmart Inc., he said.The move is a way for FedEx to “get Walmart to realize that they’re not working with Walmart’s biggest competitor and to have Walmart make FedEx their primary carrier,” Jindel said on Bloomberg Radio.Amazon made up about 1.3% of FedEx’s sales last year. To scoop up more e-commerce business, FedEx announced in May that its ground unit would begin seven-day service in January, deliver more packages that had been handed off to the postal service and invest to handle oversized packages.The Memphis, Tennessee-based company has also signed up more drop-off and pick-up points, including with Dollar General Corp. FedEx is even testing a ground-delivery robot.‘Near-Term Pain’By walking away from Amazon, FedEx is looking to increase its profit margins, even though the company could feel “some near-term pain,” Lee Klaskow, an analyst with Bloomberg Intelligence in a Wednesday note.“This move is a logical progression after letting its Express contract expire in June,” Klaskow said. The Amazon contract “we believe was a low-margin business.”UPS, the largest U.S. courier, is taking a different tack by continuing its relationship with Amazon. Analysts have estimated that the retailer’s pledge to expand overnight deliveries fueled a 30% spike in UPS’s domestic next-day volume in the second quarter.UPS hasn’t said how much revenue it generates from Amazon, but if the total were more than 10%, the courier would be obligated to disclose the information in regulatory filings. The amount is probably close to that threshold, according to analyst estimates.Some of the ground packages that FedEx handled for Amazon will migrate to UPS, said David Ross, an analyst with Stifel Financial Corp. FedEx’s international deliveries for Amazon are likely very small, he said.Double-Edged SwordAmazon-related revenue as a percentage of FedEx’s total probably fell to less than 1% after the courier’s June decision not to renew the domestic air-delivery deal, Ross said in a note to clients. Ending ground delivery will make FedEx’s Amazon revenue “not worth mentioning,” he said.The surge in e-commerce business has been a double-edged sword for FedEx and UPS by spurring sales growth while squeezing profit margins, since home-deliveries are more costly to handle than dropoffs at commercial customers.In June, FedEx said it was in a “transition year” as it seeks to drive down costs and fix an ailing European business. The company forecast a mid single-digit percentage drop in earnings for the current fiscal year, which ends in May.\--With assistance from Cecilia Esquivel.To contact the reporter on this story: Thomas Black in Dallas at tblack@bloomberg.netTo contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Susan WarrenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • American City Business Journals

    The highest — and lowest — profits per employee at Tennessee's billion-dollar companies

    How much are employees worth, in profit dollars, to some of the state's largest companies? It runs the gamut from $1,200 to more than $237,000 per employee.

  • Will Tariffs Impact Dollar Tree? Deutsche Bank Thinks So
    Market Realist

    Will Tariffs Impact Dollar Tree? Deutsche Bank Thinks So

    Deutsche Bank downgraded Dollar Tree stock to a “hold” from a “buy” yesterday. It believes the newly announced tariffs will negatively affect the retailer.

  • Dollar General (DG) Stock Moves -0.78%: What You Should Know

    Dollar General (DG) Stock Moves -0.78%: What You Should Know

    Dollar General (DG) closed the most recent trading day at $132.65, moving -0.78% from the previous trading session.

  • Is Dollar General (DG) Outperforming Other Retail-Wholesale Stocks This Year?

    Is Dollar General (DG) Outperforming Other Retail-Wholesale Stocks This Year?

    Is (DG) Outperforming Other Retail-Wholesale Stocks This Year?

  • Wish, now valued at $11.2 billion, wants to deliver Chinese-made goods faster
    Yahoo Finance

    Wish, now valued at $11.2 billion, wants to deliver Chinese-made goods faster

    Wish raised a new round of funding to deliver online orders faster to bargain lovers who don't want to pay for an Amazon Prime membership.

  • Expedia Group (EXPE) Q2 Earnings & Revenues Beat Estimates

    Expedia Group (EXPE) Q2 Earnings & Revenues Beat Estimates

    Expedia Group's (EXPE) second-quarter results benefit from robust performance of Vrbo, Brand Expedia and Expedia Partner Solutions.

  • Zacks

    All Mixed Up to Start Fed Week

    All Mixed Up to Start Fed Week

  • Dollar General (DG) Dips More Than Broader Markets: What You Should Know

    Dollar General (DG) Dips More Than Broader Markets: What You Should Know

    Dollar General (DG) closed at $135.80 in the latest trading session, marking a -1.57% move from the prior day.

  • 7 Great Dividend Growth Stocks for Higher Returns

    7 Great Dividend Growth Stocks for Higher Returns

    Given the decline in yields and the prospect of lower interest rates, investors are in search of returns. This has raised the appeal for dividend investing.

  • Why Wells Fargo Downgraded Dollar General Stock
    Market Realist

    Why Wells Fargo Downgraded Dollar General Stock

    Wells Fargo downgraded Dollar General (DG) stock to “market perform” from “outperform” on July 25. It remains positive about the company’s prospects.

  • CarMax (KMX) Hits Fresh High: Is There Still Room to Run?

    CarMax (KMX) Hits Fresh High: Is There Still Room to Run?

    CarMax (KMX) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.

  • Amazon has an underappreciated weapon in groceries: M&A advisor
    Yahoo Finance

    Amazon has an underappreciated weapon in groceries: M&A advisor

    Amazon's size and low cost of capital give it an underappreciated edge against traditional grocer competitors, says one M&A advisor.