Wall Street Sees a 21% Upside to Dollar General (DG)

By Hamna Asim | December 17, 2025, 8:11 AM

Dollar General Corporation (NYSE:DG) is one of the best stocks to buy according to Seth Klarman. As of December 12, the average price target for DG suggests a downside of a meager 0.11%; however, the Street high indicates an upside of 21%. As of the third quarter of 2025, Klarman owns 2.6 million shares of Dollar General valued at $275.6 million.

On December 5, Truist Financial analyst Scot Ciccarelli maintained a Hold rating on Dollar General Corporation (NYSE:DG) and raised the price target to $129 from $120. The updated price target is attributed to the company’s Q3 financial results, which showed $10.65 billion in sales, up 2.5% and in line with market consensus. While sales met street expectations, DG’s EPS of $1.28 topped Truist’s $0.96 EPS estimate.

Wall Street Sees a 21% Upside to Dollar General (DG)
Photo by Franki Chamaki on Unsplash

According to Truist, Dollar General’s strong earnings were driven by reduced shrink, larger markups, and modest advantage from hurricane-related buying. The investment firm noted that Dollar General’s sales growth has returned to its earlier 2-3% pace after headwinds in 2023 and 2024.

The company’s better margins this year have been driven by diminished inventory, SKU optimization initiatives, and lower shrinkage, as per Truist. The firm reiterated its Hold recommendation, regardless of the improved numbers, as it sees tough margin comparisons next year.

While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Dow 20 Stocks List: Ranked By Hedge Fund Bullishness Index and 10 Unstoppable Dividend Stocks to Buy Now.

Disclosure. None.

Mentioned In This Article

Latest News