In the latest close session, Dollar General (DG) was up +2.63% at $135.78. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq lost 1.07%.
The discount retailer's stock has climbed by 11.23% in the past month, exceeding the Retail-Wholesale sector's gain of 3.73% and the S&P 500's loss of 0.87%.
Analysts and investors alike will be keeping a close eye on the performance of Dollar General in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.4, indicating a 9.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $11.13 billion, indicating a 4.53% growth compared to the corresponding quarter of the prior year.
DG's full-year Zacks Consensus Estimates are calling for earnings of $7.94 per share and revenue of $44.55 billion. These results would represent year-over-year changes of +15.91% and +4.27%, respectively.
Investors should also note any recent changes to analyst estimates for Dollar General. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Right now, Dollar General possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Dollar General has a Forward P/E ratio of 16.66 right now. This signifies a discount in comparison to the average Forward P/E of 19.9 for its industry.
We can also see that DG currently has a PEG ratio of 1.71. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Report
This article originally published on Zacks Investment Research (zacks.com).
