Dollar General (DG) closed at $92.62 in the latest trading session, marking a -1.9% move from the prior day. This change was narrower than the S&P 500's 5.98% loss on the day. At the same time, the Dow lost 5.5%, and the tech-heavy Nasdaq lost 5.82%.
The the stock of discount retailer has risen by 23.83% in the past month, leading the Retail-Wholesale sector's loss of 8.75% and the S&P 500's loss of 7.66%.
The investment community will be closely monitoring the performance of Dollar General in its forthcoming earnings report. The company is expected to report EPS of $1.46, down 11.52% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $10.25 billion, indicating a 3.41% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.54 per share and revenue of $42.09 billion. These totals would mark changes of -6.42% and +3.64%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Dollar General. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Over the past month, the Zacks Consensus EPS estimate has shifted 6.29% downward. Dollar General currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 17.04. This valuation marks a discount compared to its industry's average Forward P/E of 20.48.
It's also important to note that DG currently trades at a PEG ratio of 2.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.67 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 34% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
