Back to top

Analyst Blog

We expect Dollar General Corporation (DG - Analyst Report), a discount retailer, to beat expectations when it reports second-quarter fiscal 2013 results on Sep 4, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Dollar General is likely to beat earnings because it has the right combination of two key components.       

Positive Zacks ESP: Dollar General currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +1.35%. This is because the Most Accurate Estimate stands at 75 cents, while the Zacks Consensus Estimate is pegged at 74 cents.               

Zacks Rank #2 (Buy): Note that stocks with a Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Dollar General’s Zacks Rank #2 (Buy) and +1.35% ESP makes us very confident regarding a positive earnings beat on Sep 4.

What is Driving the Better-than-Expected Earnings?     

Dollar General’s merchandising initiatives, including addition of private-label brands; remodeling endeavors; expansion of the selling area; and share buyback program make us confident on the stock outperformance in the second quarter. The positive trend is seen in the trailing four-quarter average surprise of 4.8%.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

The Buckle, Inc. (BKE - Snapshot Report), Earnings ESP of +2.20% and a Zacks Rank #2 (Buy).

Zumiez, Inc. (ZUMZ - Analyst Report), Earnings ESP of +5.88% and a Zacks Rank #3 (Hold).

Dollar Tree, Inc. (DLTR - Analyst Report), Earnings ESP of +1.70% and a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%