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Dollar General Hits 52-Week High: Are You Part of the Rally?

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Shares of Dollar General Corporation (DG - Free Report) hit a 52-week high of $90.06 on May 27 buoyed by its first-quarter fiscal 2016 results. So, were you part of the rally? Even if you were not, there is still time to get into the race. The stock looks sturdy, backed by sound fundamentals and a track record of better-than-expected bottom-line results. Moreover, it may not be a surprise if it touches another 52-week high within a short period. 

Dollar General looks promising with a long-term earnings growth rate of 14.7%. We believe that the company’s commitment toward better price management, merchandise, cost containment and operational initiatives, bode well. This is evident from its first-quarter results, wherein earnings of $1.03 per share beat the Zacks Consensus Estimate of 94 cents and surged 22.6% from the year-ago quarter.

This was the fifth straight quarter in which the company posted a positive earnings surprise. In the trailing four quarters, it outperformed the Zacks Consensus Estimate by an average of 3.5%. Net sales came in at $5,265.4 million and increased 7% from the prior-year quarter.

Dollar General, in the recent past, had highlighted its long-term growth model. This includes earnings per share annual growth target of 10–15% and net sales increase of 7–10%, including square footage growth of 6–8% and comparable-store sales growth of 2–4%.

DOLLAR GENERAL Price, Consensus and EPS Surprise

DOLLAR GENERAL Price, Consensus and EPS Surprise | DOLLAR GENERAL Quote

Zacks Rank

Dollar General carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the retail sector include Delta Apparel Inc. (DLA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Children's Place, Inc. (PLCE - Free Report) and Carter's, Inc. (CRI - Free Report) , both holding a Zacks Rank #2 (Buy).

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