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Dollar Store Stock Earnings Preview: DG vs. DLTR

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Today’s video takes a closer look at the discount store segment of the retail world, a segment which has been on fire as of late.

This industry actually has a top 13% rank so it is looking to keep up its momentum heading into a new stretch of earnings reports. And with a host of retail names offering up good reports, the expectations are likely high for this group too.

However, a better economy could actually have a negative impact on companies in this segment as consumers trade up for higher quality items. And with a multi-year run at their backs, there has to be concerns about a cool-off period and overvaluation. We will know for sure by the end of the week though, so let’s take a preview of a few of the important names in this group ahead of their reports…

Dollar General (DG - Free Report)

Dollar General is riding a nice streak when it comes to beating expectations, while the company has a great fundamental score of ‘A’ too. Unfortunately, DG just fell to Zacks Rank #3 (hold) territory from buy level within the past week, while earnings estimates have been choppy lately. The stock is near multi-year highs though, so growth rates and the outlook will definitely have to deliver.

DOLLAR GENERAL Price, Consensus and EPS Surprise

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

Dollar General reports before the bell on 8/25.

 

 

Dollar Tree (DLTR - Free Report)

Dollar Tree is also running up to multi-year highs, but its shares have seen a much shakier trend when it comes to beating estimates. The stock does have a nice fundamental grade though, while it does possess a Zacks Rank #2 (Buy) as well. Add this to a positive earnings ESP and there are fewer hurdles to continued gains in this name for the coming earnings season, even with the choppier history.

DOLLAR TREE INC Price, Consensus and EPS Surprise

DOLLAR TREE INC Price, Consensus and EPS Surprise | DOLLAR TREE INC Quote

Dollar Tree reports before the bell on 8/25.

 

For more in-depth analysis of these companies, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, check out our podcast below:


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