Dollar General (DG) closed at $146.65 in the latest trading session, marking a +1.21% move from the prior day. This move lagged the S&P 500's daily gain of 1.97%. Elsewhere, the Dow saw an upswing of 2.47%, while the tech-heavy Nasdaq appreciated by 2.18%.
The discount retailer's stock has climbed by 0.63% in the past month, falling short of the Retail-Wholesale sector's gain of 1.28% and outpacing the S&P 500's loss of 1.49%.
Investors will be eagerly watching for the performance of Dollar General in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.57, showcasing a 6.55% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $10.74 billion, indicating a 4.26% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.49 per share and a revenue of $42.56 billion, signifying shifts of +9.63% and +4.79%, respectively, from the last year.
Any recent changes to analyst estimates for Dollar General should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% higher. Currently, Dollar General is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Dollar General currently has a Forward P/E ratio of 20.47. This valuation marks a discount compared to its industry average Forward P/E of 26.58.
Investors should also note that DG has a PEG ratio of 2.41 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. DG's industry had an average PEG ratio of 2.97 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 41, positioning it in the top 17% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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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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