Wolfe Research Affirms 'Outperform' Rating on Dollar General Corporation (DG) on Improving Fundamentals

Dollar General Corporation (NYSE:DG) is one of the best FMCG stocks to invest in. On September 18, Wolfe Research analyst Spencer Hanus reiterated an ‘Outperform’ rating on the stock and set a $139 price target.

The bullish stance is based on the stock’s underperformance relative to the overall sector over the past few years. The Wolfe Research analyst believes the tide is slowly shifting in favor of the discount retailer, as operations show signs of improvement.

According to Hanus, the company’s current estimates of its performance are too low. The stock’s valuation is also compelling, given its years of underperformance. The remarks also come as the research firm reiterates that retailers have benefited from a strong back-to-school purchasing spree.

Dollar General Corporation (NYSE:DG) operates a chain of neighborhood retail stores that provide affordable, everyday essentials, including food, cleaning supplies, personal care, and health items, to communities, particularly in rural and smaller towns.

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Disclosure: None. This article is originally published at Insider Monkey.