Dollar General (DG) ended the recent trading session at $95.94, demonstrating a -4.64% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.12%. At the same time, the Dow lost 0.84%, and the tech-heavy Nasdaq lost 1.9%.
The discount retailer's shares have seen an increase of 2.5% over the last month, surpassing the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 1.26%.
The upcoming earnings release of Dollar General will be of great interest to investors. The company is forecasted to report an EPS of $0.95, showcasing a 6.74% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $10.62 billion, up 4.25% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $6.13 per share and revenue of $42.5 billion. These results would represent year-over-year changes of +3.55% and +5.82%, respectively.
Investors might also notice recent changes to analyst estimates for Dollar General. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Currently, Dollar General is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Dollar General is currently exchanging hands at a Forward P/E ratio of 16.4. For comparison, its industry has an average Forward P/E of 26.2, which means Dollar General is trading at a discount to the group.
We can additionally observe that DG currently boasts a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.68 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 30% of over 250 industries.
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.
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Dollar General Corporation (DG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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