Dollar General (DG) Surges 20.9% on Strong Earnings. Time to Book Gains?

We recently published 10 Stocks Sparking Massive Fortunes. Dollar General Corporation (NYSE:DG) is one of the best performers on Friday.

Dollar General soared by 20.9 percent week-on-week as investor sentiment was bolstered by a strong earnings performance in the third quarter of the year.

In an updated report on Thursday, Dollar General Corporation (NYSE:DG) said it grew its net income by 43.8 percent to $282.6 million from $196.5 million in the same period last year.

Net sales inched up by 4.6 percent to $10.6 billion from $10.2 billion year-on-year, on the back of positive sales contributions from new stores, coupled with strong same-store sales, which partially offset the impact of store closures.

Same-store sales grew by 2.5 percent due to higher foot traffic.

Following the results, Dollar General Corporation (NYSE:DG) raised its net sales outlook for the full fiscal year to a range of 4.7 to 4.9 percent from 4.3 to 4.8 percent previously.

Same-store sales are targeted to grow by 2.5 to 2.7 percent, versus 2.1 to 2.6 percent prior.

Diluted EPS—which continues to assume an effective tax rate of 23.5 percent—is projected at $6.30 to $6.50, higher than the $5.80 to $6.30 previously.

In other news, Dollar General Corporation (NYSE:DG) announced the distribution of $0.59 in cash dividends for every common share held by shareholders on January 6, 2026 record. The dividends are payable on January 20, 2026.

While we acknowledge the potential of DG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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