In the latest market close, Dollar General (DG) reached $93.69, with a +0.39% movement compared to the previous day. This change outpaced the S&P 500's 0.15% gain on the day. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the discount retailer witnessed a gain of 6.54% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.27% and the S&P 500's loss of 0.21%.
Market participants will be closely following the financial results of Dollar General in its upcoming release. On that day, Dollar General is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 11.52%. Our most recent consensus estimate is calling for quarterly revenue of $10.25 billion, up 3.43% from the year-ago period.
DG's full-year Zacks Consensus Estimates are calling for earnings of $5.55 per share and revenue of $42.1 billion. These results would represent year-over-year changes of -6.25% and +3.66%, respectively.
It is also important to note the recent changes to analyst estimates for Dollar General. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% increase. Dollar General is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Dollar General is holding a Forward P/E ratio of 16.82. This valuation marks a discount compared to its industry's average Forward P/E of 21.98.
Also, we should mention that DG has a PEG ratio of 2.74. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Discount Stores industry stood at 2.74 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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