In the latest trading session, Dollar General (DG - Free Report) closed at $222.87, marking a +1.26% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, lost 0.47%.
Coming into today, shares of the discount retailer had gained 8.56% in the past month. In that same time, the Retail-Wholesale sector gained 6.56%, while the S&P 500 gained 3.19%.
DG will be looking to display strength as it nears its next earnings release. On that day, DG is projected to report earnings of $1.93 per share, which would represent year-over-year growth of 35.92%. Our most recent consensus estimate is calling for quarterly revenue of $7.97 billion, up 13.98% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.07 per share and revenue of $32.88 billion, which would represent changes of +49.63% and +18.45%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.94% higher within the past month. DG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DG has a Forward P/E ratio of 21.86 right now. Its industry sports an average Forward P/E of 22.84, so we one might conclude that DG is trading at a discount comparatively.
Investors should also note that DG has a PEG ratio of 1.97 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DG's industry had an average PEG ratio of 3.16 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.