Dollar General Almost Doubles in a Year: Is DG Stock Still a Buy?

Despite an uncertain macroeconomic backdrop and lingering geopolitical tensions, Dollar General Corporation DG has emerged as one of retail’s standout performers, with shares surging about 98% over the past year. The rally reflects investor confidence in DG’s business model, compelling value proposition, stabilizing execution and growth initiatives ranging from store remodel programs to an aggressive real estate expansion strategy. After such a momentum, investors are increasingly asking whether the stock still offers attractive upside, or if much of the good news is already priced in.

DG Stock Past-Year Performance

Closing yesterday’s trading session at $147.37, Dollar General has outpaced both its industry and the S&P 500, which gained 7.1% and 16.7%, respectively, over the past year. The stock’s rally has also surpassed returns from key retail peers such as Ross Stores, Inc. ROST, Costco Wholesale Corporation COST and Target Corporation TGT. While shares of Ross Stores have advanced 36.8% over the past year, Costco and Target have moved in the opposite direction, declining 6.2% and 12.2%, respectively.
 

DG Stock Trading Above 50-Day Moving Average

Dollar General’s technical setup remains supportive, with the stock trading above its 50-day moving average of $137.15, signaling near-term momentum. DG is also trading above its 200-day moving average of $112.35, which reflects a more durable long-term uptrend.
 

Over the past month, Dollar General stock has declined about 1.4%, likely reflecting some profit-taking after reaching recent highs. Shares are currently trading below their 52-week high of $154.75, which was achieved on Jan. 14, 2026.

Decoding Potential Tailwinds Behind DG’s Rally

Dollar General has been gaining market share, supported by its resilient product mix, strategic focus on value and footprint expansion. The company’s “back-to-basics” initiative has strengthened its operational foundation, reinforcing a model that tends to hold up when consumer budgets are pressured. This positioning helps sustain customer traffic and broaden the shopper base, including increased engagement from higher-income households seeking everyday value.

The company’s growth is further supported by a disciplined and aggressive real estate strategy with targeted remodels to enhance productivity. In fiscal 2026, management plans to execute about 4,730 real estate projects, including 450 new store openings in the United States, roughly 10 new stores in Mexico, 2,000 Project Renovate remodels and 2,250 Project Elevate remodels. These multi-faceted initiatives are designed to optimize merchandise assortments and refresh mature locations, helping sustain sales momentum. With nearly 11,000 additional expansion opportunities identified in the United States, Dollar General maintains a long runway for profitable growth.

Dollar General has made meaningful progress in reducing shrink and improving inventory markups, supporting a gradual recovery in margins. Through tighter inventory controls and improved forecasting, the company can better balance in-stock availability with profitability. Dollar General continues to drive traffic and same-store sales through balanced demand across its product assortment. While consumables remain a core traffic driver, discretionary categories — including home, seasonal merchandise and apparel — are also contributing, reflecting effective merchandising decisions and improved use of store space.

DG is advancing its retail strategy by expanding myDG Delivery to improve shopping speed. The same-day delivery service, available through the DG app and website, leverages Dollar General’s vast network of stores to bring faster access to everyday essentials, particularly in rural communities that have long faced limited options. The service is now available at more than 17,000 stores, with about 75% of the population residing within five miles of a Dollar General location.

This focus on speed is complemented by strategic partnerships with major delivery platforms like DoorDash, available in more than 18,000 stores, and Uber Eats, serving more than 17,000 stores. By integrating these services, Dollar General ensures that convenience is accessible to millions of shoppers. As digital engagement increases, these initiatives are helping drive incremental traffic, improve basket size and strengthen customer loyalty.

Here’s How Estimates Shape Up for DG

Wall Street analysts have expressed confidence in Dollar General by raising their earnings estimates. Over the past 30 days, the Zacks Consensus Estimate for the current and next fiscal years has risen by a couple of cents to $6.49 and $7.08 per share, respectively. These estimates indicate expected year-over-year growth rates of 9.6% and 9.2%, respectively. 
 

Is Dollar General Stock Undervalued or Overvalued?

Dollar General is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 20.76. This represents a meaningful discount to the broader industry average of 33.37 and remains slightly below the S&P 500’s forward multiple of 22.98. While the stock is trading above its one-year median P/E of 16.83, the premium may be justified by growing investor confidence in Dollar General.

Dollar General is trading at a premium to Target (with a forward 12-month P/E ratio of 14.87) but at a discount to Costco (47.48) and Ross Stores (27.26). 
 

How to Play DG Stock: Buy, Hold or Sell?

Dollar General’s strong rally over the past year highlights improved execution, driven by a stronger value proposition, disciplined store remodels and expansions, and greater convenience from digital and delivery initiatives. While the stock is no longer as inexpensive as it was earlier in the cycle, the underlying fundamentals indicate a long runway for growth. For current shareholders, maintaining exposure appears reasonable, given the improving outlook, while new investors may still find the stock attractive, especially if approached with a long-term perspective and attention to potential pullbacks as the next entry opportunity. DG stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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