The latest trading session saw Dollar General (DG) ending at $100.78, denoting a -1.39% adjustment from its last day's close. This change was narrower than the S&P 500's 1.61% loss on the day. On the other hand, the Dow registered a loss of 1.91%, and the technology-centric Nasdaq decreased by 1.41%.
Shares of the discount retailer witnessed a gain of 5.59% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 11.89% and the S&P 500's gain of 12.65%.
Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. The company's earnings report is set to go public on June 3, 2025. It is anticipated that the company will report an EPS of $1.47, marking a 10.91% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $10.28 billion, indicating a 3.69% increase compared to the same quarter of the previous year.
DG's full-year Zacks Consensus Estimates are calling for earnings of $5.58 per share and revenue of $42.15 billion. These results would represent year-over-year changes of -5.74% and +3.78%, respectively.
Any recent changes to analyst estimates for Dollar General should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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, there's been a 0.34% rise in the Zacks Consensus EPS estimate. Dollar General presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Dollar General is at present trading with a Forward P/E ratio of 18.32. This expresses a discount compared to the average Forward P/E of 22.91 of its industry.
It is also worth noting that DG currently has a PEG ratio of 2.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 2.98.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 40% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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