Dollar General (DG - Free Report) , one of the largest discount retailers, is slated to report second-quarter fiscal 2016 results on Aug 25. The question in investors’ minds now is whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the preceding quarter, Dollar General outperformed the Zacks Consensus Estimate by 9.6%. In the trailing four quarters, it beat the Zacks Consensus Estimate by an average of 3.5%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Dollar General is likely to beat earnings estimates this fiscal quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Dollar General has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.09. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
We believe that Dollar General’s commitment to improve price management, merchandise, cost containment and operational initiatives will favor results in the quarter to be reported. However, the company’s lower-than-expected sales in the last 11 quarters remain a matter of concern. Moreover, analysts expect margins to be pressurized by higher sales of lower margin carrying consumables.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #2.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.
GameStop Corp. (GME - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #3.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Dollar General (DG - Free Report) , one of the largest discount retailers, is slated to report second-quarter fiscal 2016 results on Aug 25. The question in investors’ minds now is whether the company will be able to continue with its positive earnings surprise streak in the quarter to be reported. In the preceding quarter, Dollar General outperformed the Zacks Consensus Estimate by 9.6%. In the trailing four quarters, it beat the Zacks Consensus Estimate by an average of 3.5%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Dollar General is likely to beat earnings estimates this fiscal quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Dollar General has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.09. The company carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, its ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
We believe that Dollar General’s commitment to improve price management, merchandise, cost containment and operational initiatives will favor results in the quarter to be reported. However, the company’s lower-than-expected sales in the last 11 quarters remain a matter of concern. Moreover, analysts expect margins to be pressurized by higher sales of lower margin carrying consumables.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Dollar Tree, Inc. (DLTR - Free Report) has an Earnings ESP of +4.11% and a Zacks Rank #2.
Best Buy Co., Inc. (BBY - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.
GameStop Corp. (GME - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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