In the latest trading session, Dollar General (DG) closed at $152.90, marking a +1.5% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 1.04%. At the same time, the Dow lost 1.66%, and the tech-heavy Nasdaq lost 1.13%.
The stock of discount retailer has risen by 2.53% in the past month, leading the Retail-Wholesale sector's loss of 3.1% and the S&P 500's gain of 1.75%.
The upcoming earnings release of Dollar General will be of great interest to investors. The company's earnings report is expected on March 12, 2026. The company is expected to report EPS of $1.58, down 5.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.75 billion, up 4.34% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and revenue of $42.56 billion, which would represent changes of +9.63% and +4.81%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dollar General. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.15% rise in the Zacks Consensus EPS estimate. At present, Dollar General boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Dollar General is currently trading at a Forward P/E ratio of 21.25. This valuation marks a discount compared to its industry average Forward P/E of 28.28.
We can additionally observe that DG currently boasts a PEG ratio of 2.5. 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 3.02 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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