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Has Dollar General (DG) Outpaced Other Retail-Wholesale Stocks This Year?

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For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Dollar General (DG - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Dollar General is one of 230 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Dollar General is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DG's full-year earnings has moved 0.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, DG has moved about 4.7% on a year-to-date basis. In comparison, Retail-Wholesale companies have returned an average of -20.7%. This means that Dollar General is performing better than its sector in terms of year-to-date returns.

Another stock in the Retail-Wholesale sector, Dollar Tree (DLTR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 22.2%.

For Dollar Tree, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Dollar General is a member of the Retail - Discount Stores industry, which includes 8 individual companies and currently sits at #173 in the Zacks Industry Rank. Stocks in this group have lost about 11.9% so far this year, so DG is performing better this group in terms of year-to-date returns. Dollar Tree is also part of the same industry.

Investors interested in the Retail-Wholesale sector may want to keep a close eye on Dollar General and Dollar Tree as they attempt to continue their solid performance.


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